While cryptocurrency markets have had a strong start to the year, Coinbase’s senior strategist John D’Agostino stated that Bitcoin and blockchain technology have cemented their permanent place in the financial world.
Appearing on CNBC, D’Agostino argued that the era of “skepticism” in the market was over and that corporate support was now combined with individual sensitivity.
D’Agostino noted that there was a significant divergence of opinion between institutional and individual investors for much of last year. According to the strategist, while individual investors panicked due to ETF outflows and volatility, the institutional side and regulatory clarity did not lose momentum.
D’Agostino said, “Over the past 6-7 months, there was a big gap between corporate and regulatory momentum and negative individual sentiment. But now we are seeing individual sentiment catching up with corporate momentum.”
D’Agostino noted that there had been inflows of approximately $520 million into ETFs in the last seven days, adding that prices had responded to this demand.
Highlighting Bitcoin’s ability to protect against inflation, D’Agostino offered a striking comparison:
- Over the last 10 years: Gold has gained 260%, the S&P 500 300%, while Bitcoin has increased in value by more than 11,000%.
- D’Agostino stated that the purchasing power of the dollar has decreased by a third during the same period, arguing that Bitcoin is the most powerful “fuel” to beat inflation in the long term.
D’Agostino, highlighting the importance of Bitcoin’s use in regions like Venezuela where local currencies are unstable, stated that such geopolitical events reinforce the thesis that Bitcoin serves as a “store of value replacing temporary currency.” He also reminded that Bitcoin can now be spent at tens of thousands of locations and is even being used as collateral for mortgage loans.
Commenting on the perspective of traditional financial giants towards blockchain technology, D’Agostino noted that figures like JP Morgan CEO Jamie Dimon have begun to speak more positively. Stating that “skepticism” in the sector has given way to “regret or resentment,” the strategist said, “For those who have been vocally negative towards this asset class for 10-12 years, the situation has become somewhat embarrassing.”
According to D’Agostino, almost all major companies in the world today either have a blockchain strategy or are actively working on one.
*This is not investment advice.
