Coinbase CEO Brian Armstrong has presented a bold thesis that upends the conventional understanding of cryptocurrency evolution. In his view, Bitcoin never became what Satoshi Nakamoto intended — a daily digital payment method. Instead, the first cryptocurrency met the fate of digital gold: a tool for saving, not exchange. Meanwhile, stablecoins have taken over the niche of global decentralized money.
Bitcoin: From Payment System to Digital Asset
In the original 2008 Whitepaper, Satoshi described precisely electronic cash operating without intermediaries. The first BTC block even contained a headline about helping British banks — this was the essence of the idea. However, 17 years later, Armstrong states: making Bitcoin a mass payment method has failed. Attempts to solve the problem through the Lightning Network have not led to widespread adoption. The root of the problem lies in the architecture itself: limited supply and volatility force holders to perceive BTC as an asset that appreciates over time, making it pointless to spend now.
Stablecoins: Satoshi's Unexpected Heirs
It is stablecoins, pegged to the dollar, that have filled the resulting vacuum. They have become a real tool for daily transactions, money transfers, and settlements. Armstrong notes that we have witnessed explosive growth of stablecoins on the blockchain. Fiat tokens have taken on the role of a medium of exchange, while Bitcoin has established itself as a store of value.
Market Confirms the Shift
Data from DefiLlama shows that the total supply of stablecoins has approached $310 billion, with Tether's USDT accounting for $184 billion and Circle's USDC for another $73 billion. For comparison, Bitcoin is trading around $64,523, nearly 45% below its peak in October 2025, when the rate reached $126,080. Against this backdrop, the supply of stablecoins is hitting all-time highs.
Regulatory Momentum and a New Direction
The GENIUS Act (Great Beautiful Bill), signed by Trump in July 2025, legalized stablecoins in the U.S. and ensured user trust. A significant portion of turnover now occurs on the Base and Solana networks. Armstrong sees no problem in this: according to him, Bitcoin has simply found its niche. The creators did not intend it as a tool for mass payments — for them, Bitcoin has always been digital gold.
Expert Commentary: This transformation is not a deviation from the course but a natural market evolution. Stablecoins have indeed realized the key function of money — being a medium of exchange with predictable value — while Bitcoin has confirmed its status as a safe-haven asset. Investors should stop evaluating BTC as a payment system and perceive it as a long-term hedge against fiat currency inflation.