Bitwise: Iran standoff could expand Bitcoin’s market past gold

Matt Hougan, chief investment officer at Bitwise, made the remarks on April 14 while referring to Iran’s proposal to charge shipping tolls payable in cryptocurrency for vessels transiting the Strait of Hormuz. He described that use as a currency-like example that could widen Bitcoin’s demand beyond investors who view it as a store of value.

Hougan said, “In a world where countries have weaponized their financial rails, Bitcoin is emerging as an apolitical alternative.” He added that if Bitcoin serves both as a store of value and an international medium of exchange, target price forecasts would need upward revision.

Bitcoin was trading near $74,500 with a market capitalization around $1.4 trillion, according to CoinGecko. Gold traded near $4,854 an ounce, and the total value of above-ground gold is estimated at about $33.7 trillion.

Previously, the Bitwise CIO mapped a path to $1M per coin if Bitcoin captures 17% of the store-of-value market over the next decade. He said broader adoption as an international currency would push potential valuations higher.

Corporate and institutional holdings have grown. Tracking by BitBo indicates public and private companies together hold more than 1.5 million Bitcoin, with an aggregate value exceeding $116 billion at current prices.

Merchant acceptance has also expanded; merchant-tracking data shows about 11,000 merchants worldwide accept Bitcoin as payment.

Market participants point to limits on currency use, including volatility, regulatory uncertainty and technical hurdles. Supporters cite features such as censorship resistance and the ability to transfer value across borders.

Bitcoin was launched in 2009 as a decentralized digital currency. Gold has long been a dominant store of value with an estimated market worth in the tens of trillions. A shift from mainly speculative holdings toward routine payments or sovereign and corporate reserves would change how the two assets are compared.