Coinbase CEO Brian Armstrong made a provocative statement that forces a rethinking of the evolution of cryptocurrencies. In his view, it is stablecoins, not Bitcoin, that have become the true embodiment of Satoshi Nakamoto's original idea of digital money for everyday transactions.
In an interview with Zerodha co-founder Nikhil Kamath, Armstrong clearly drew the line: Bitcoin has successfully established itself as a store of value but has never transformed into a full-fledged payment system. The first cryptocurrency became digital gold, while stablecoins took on the function of a daily payment instrument.
The root of the problem lies in Bitcoin's very architecture. Limited supply creates an expectation of price appreciation among holders, which encourages accumulation rather than spending. High volatility only amplifies this effect. Attempts to solve the problem through the Lightning Network have not led to mass adoption.
Meanwhile, the stablecoin market is experiencing explosive growth. The total supply is approaching $310 billion, of which $184 billion is accounted for by Tether's USDT and $73 billion by Circle's USDC. A significant portion of turnover now passes through the Base and Solana networks.
Armstrong also noted the role of the GENIUS Act, a law signed by Trump in July 2025. The document legalized stablecoins in the U.S. and increased user confidence, giving additional impetus to the sector's development.
My analysis: The evolution of the market confirms that Satoshi's original concept of peer-to-peer electronic money has transformed into a multi-layered ecosystem. Bitcoin has carved out its niche as a digital safe-haven asset, while stablecoins have become a practical tool for everyday transactions. This is not a failure of the vision, but its adaptation to real market conditions. The only question is whether Bitcoin will ever reclaim its payment function, or whether its destiny will forever remain that of digital gold.