John D’Agostino Highlights Bitcoin as a Prime Inflation Hedge Alongside Gold

Coinbase’s John D’Agostino emphasises Bitcoin’s emerging role as a hedge against inflation, likening it to gold. He suggests institutional interest is rising while retail investors withdraw. Bitcoin’s unique advantages, such as instant transfer and scarcity, bolster its appeal. D’Agostino warns, however, about relying too heavily on any asset for inflation protection.

John D’Agostino, the Head of Strategy at Coinbase Institutional, recently spoke about Bitcoin in an interview with CNBC. Compared to gold, D’Agostino believes Bitcoin is increasingly being recognised as a solid long-term hedge against inflation. He mentioned that as Bitcoin trades around $92,500, it demonstrates notable stability and a competitive edge due to its instant transferability, setting it apart from gold, which has more limitations in terms of storage and mobility.

D’Agostino contended that Bitcoin’s status has risen, commonly appearing among the top five assets in inflation hedge simulations conducted by major global commodity traders. He remarked, “Bitcoin and gold go side by side,” underscoring a growing institutional interest in Bitcoin, which is now seen as a potential non-sovereign asset.

Interestingly, a distinction has appeared between retail and institutional behaviours. While retail investors retreated from Bitcoin ETFs in April, institutional investors—like sovereign wealth funds and insurance pools—continued to accumulate Bitcoin directly. This trend coincided with Bitcoin’s 13% price jump, significantly outpacing gold’s 10.5% rise in the same timeframe.

D’Agostino noted that Bitcoin and gold showcase similar characteristics such as scarcity, immutability, portability, and an independent status outside government control. He acknowledged that investors who may have missed the gold surge are now gravitating towards Bitcoin as an alternative hedge against inflation.

However, he also pointed out that no asset can guarantee perfect hedging. His insights reflect a broader institutional strategy that is aligning closely with Bitcoin as a long-term inflation shield. This comes at a time when macroeconomic factors like de-dollarisation and heightened geopolitical volatility are reshaping investment landscapes.