While the crypto market got off to a strong start this year, John D’Agostino, senior strategist at Coinbase, said Bitcoin and blockchain technology have solidified their permanent place in the financial world.
Appearing on CNBC, D’Agostino argued that the era of “skepticism” in the market is over, and that corporate support is now tied to individual sensibilities.
D’Agostino noted that for much of the last year, there has been a huge disagreement between institutional and retail investors. The strategist said retail investors were panicked by ETF outflows and volatility, but institutional and regulatory clarity kept the momentum going.
“For the past six to seven months, there has been a huge disconnect between corporate and regulatory momentum and negative consumer sentiment, but now consumer sentiment is catching up to corporate momentum,” D’Agostino said.
D’Agostino noted that the ETF has seen approximately $520 million in inflows over the past seven days, adding that the price has responded to this demand.
D’Agostino highlighted Bitcoin’s ability to protect against inflation and offered a surprising comparison:
- Over the past decade, gold has risen 260%, the S&P 500 has risen 300%, and Bitcoin has increased in value by more than 11,000%.
- D’Agostino said the dollar’s purchasing power has fallen by a third over the same period, and argued that Bitcoin is the most powerful “fuel” to reduce inflation in the long term.
D’Agostino emphasized the importance of using Bitcoin in regions like Venezuela, where local currencies are unstable, and said geopolitical events like these strengthen the case for Bitcoin to serve as a “store of value in place of a temporary currency.” He also reminded that Bitcoin can now be used in tens of thousands of places and is even used as collateral for mortgages.
D’Agostino commented on traditional financial giants’ perspectives on blockchain technology, noting that figures like JPMorgan CEO Jamie Dimon are starting to speak out more positively. The strategist said that “skepticism” in the sector has been replaced by “regret and resentment”, adding: “For those who have been vocally negative about this asset class for 10 to 12 years, the situation has become somewhat embarrassing.”
According to D’Agostino, almost every major company in the world currently has a blockchain strategy or is actively working on it.
*This is not investment advice.
