Bitcoin’s war rally is forcing a rethink beyond ‘digital gold’

The recent 12% surge in Bitcoin's value during the Iran conflict, while traditional assets like the S&P 500 and gold declined, is prompting a reevaluation of its role. Bitwise CIO Matt Hougan argues that Bitcoin is now being viewed as two simultaneous bets: the established 'digital gold' thesis competing in the store-of-value market, and an underappreciated option on its use as an actual currency. The conflict has bolstered the latter, with Iran reportedly imposing a $1-per-barrel toll in Bitcoin on ships passing through the Strait of Hormuz, marking a real-world instance of a sovereign state using Bitcoin for commerce. This development, coupled with the U.S. weaponizing financial systems like SWIFT against Russia, positions Bitcoin as an apolitical alternative. Hougan suggests that this shift, driven by increased probability and volatility, implies Bitcoin could rally during future geopolitical conflicts and has a larger addressable market than gold alone. However, critics point out that Iran's use of Bitcoin stems from necessity and sanctions, not preference, and that crucial infrastructure for widespread currency use, like stablecoin settlement and cross-border payment rails, is still in its early stages.

(Source：CoinDesk)