Balaji: The fiat crisis has begun. The core value of Bitcoin lies in its resistance to censorship.

Odaily Planet Daily reported that former Coinbase CTO and A16z general partner Balaji posted on the X platform stating that the fiat currency crisis has already begun. The core value proposition of Bitcoin lies in its resistance to censorship. Balaji believes that while gold has value in highly organized countries, it also faces risks of tracking and confiscation. In contrast, digital gold (and cryptocurrencies) represented by Bitcoin possess invisibility, internationalization, immediacy, and native internet attributes, making them superior to physical gold in terms of transportability, programmability, and easy verification.

Balaji pointed out that as gold prices rise, actions such as taxing or confiscating physical gold will also increase. He predicts that Eastern countries like China may shift back to the gold standard, digital gold standard, or a hybrid system of both. The internet will replace the US dollar through digital gold and encryptable, verifiable digital assets. Additionally, Balaji recommends that investors consider withdrawing from regions heavily dependent on the US dollar, such as G7 countries, amid deepening sovereign debt crises. He emphasizes that in the current environment, geographic location is more important than asset allocation.