Bitwise CIO says Iran conflict is showing Bitcoin’s geopolitical value beyond digital gold

Bitwise Chief Investment Officer Matt Hougan suggests that Bitcoin's recent performance during geopolitical events, like the Iran conflict, indicates a growing market recognition of its value beyond just a digital store of value. Hougan posits that Bitcoin is increasingly being repriced as a politically neutral monetary asset with potential for cross-border settlement, especially when traditional dollar-based systems face stress. He highlights Bitcoin's rise during the Iran conflict while the S&P 500 and gold fell, supporting the idea that it acts as a hedge against geopolitical uncertainty. Hougan's argument is based on two overlapping theses: Bitcoin as digital gold and its potential as a neutral settlement asset in a world with increasing monetary volatility and fragmentation. He cites examples like increased yuan settlement between Russia and China post-Ukraine invasion and reports of Bitcoin tolls for oil exports through the Strait of Hormuz as evidence of new openings for Bitcoin in cross-border transactions. While not claiming Bitcoin is a major global settlement currency yet, Hougan believes geopolitical fragmentation makes this scenario more plausible and that markets are beginning to price this possibility in. This evolving role could lead to more optimistic long-term valuation models for Bitcoin.

(Source：Crypto Briefing)