While individuals decided to sell their Bitcoin last month, sovereign wealth funds and other institutions were just buying, says John D’Agostino of Coinbase Institutional. During an interview with CNBC, he compared Bitcoin to gold, explaining that many institutional parties are buying BTC as a hedge against inflation and macroeconomic uncertainty.
Bitcoin is digital gold
According to the head of Coinbase, Bitcoin is beginning to partially realize its potential as digital gold: “Bitcoin trades based on its core characteristics, which are similar to those of gold. There’s scarcity, inviolability, and you can take it across borders without interference. So it trades the way real Bitcoiners want it to,” says D’Agostino.
He also claims that there is only a short list of assets that have comparable properties to gold. “Bitcoin is on that list,” says the head of Coinbase.
Which other assets are on that list is unclear. This will undoubtedly include assets like silver and platinum.
Increasingly Large Entities Are Adopting Bitcoin
In 2021, El Salvador, of course, became the first country on earth to switch to a Bitcoin standard. Meanwhile, we also have Bhutan, which is quite large in the mining space and has raised more than $1 billion in Bitcoin.
And of course, we have Michael Saylor‘s MicroStrategy (now Strategy), which has raised over 500,000 Bitcoin since August 2020. Interestingly, the company Twenty One has also joined this week.
This is a collaboration between Cantor Fitzgerald, Tether, Bitfinex, and other major players in the crypto world. Twenty One’s goal is to raise as many Bitcoins as possible, and they’re starting with a savings balance of around 42,000.
This doesn’t make them MicroStrategy yet, but they’re pitching themselves as an improved version of Michael Saylor’s company. This could yet become an interesting company for Bitcoin.
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