Coinbase CEO Brian Armstrong strongly disagrees with the idea that Bitcoin will be harmed by the rise of artificial intelligence. He was responding to comments from billionaire Chamath Palihapitiya, who suggested that Bitcoin could face a major problem because miners might switch to AI – where they currently can earn 10 to 20 times more profit for their computing power.
According to Brian Armstrong, the amount of electricity used to mine Bitcoin doesn’t decide how much it’s worth, which he believes is a key mistake made by those critical of the cryptocurrency.
Why Bitcoin’s price has nothing to do with mining power
Coinbase’s CEO says people panicking about Bitcoin are missing a key feature: its ability to automatically adjust how difficult it is to mine new coins. This helps maintain stability.
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According to Armstrong, if half of all Bitcoin miners started working on AI tasks instead, the Bitcoin network could easily adjust. It wouldn’t slow down block creation, and the remaining miners could still participate as usual – actually making it easier for them to contribute.
According to Armstrong, the main factor influencing Bitcoin’s price isn’t the cost of electricity, but rather worldwide concerns about rising inflation.
That’s a good observation. The first option seems less permanent, while the second feels more long-lasting. However, the amount of computing power used for Bitcoin mining doesn’t actually control its price – the network automatically adjusts to maintain a consistent rate of block creation even if miners stop participating. Over time, the price of Bitcoin is…
— Brian Armstrong (@brian_armstrong) July 20, 2026
Even with growing government debt and money creation, the limited supply of digital assets will continue to drive demand, no matter how much energy it takes to create them.
This conversation builds on points Armstrong made last month. Back in mid-June, when the market was down, he advised investors to consider the long-term trend and shared a chart showing Bitcoin’s typical four-year pattern, highlighting that price fluctuations are normal.
The Coinbase executive stated they were optimistic about the future, remaining confident in their long-term investment. They believed Bitcoin’s lowest price point in this cycle was around $60,000 and that current conditions weren’t as negative as they appeared.
2026-07-20 12:18