Bitcoin’s total addressable market could surpass gold’s $34 trillion valuation as geopolitical tensions highlight its emerging role as both a store of value and a transactional currency, according to Bitwise.
Bitwise chief investment officer Matt Hougan said the Iran conflict, including proposals to charge crypto tolls for passage through the Strait of Hormuz, demonstrates Bitcoin’s growing utility beyond “digital gold” into a currency-like instrument.
“In a world where countries have weaponised their financial rails, Bitcoin is emerging as an apolitical alternative,”
Said Bitwise chief investment officer, Matt Hougan.
Hougan added that Bitcoin’s addressable market is likely “a lot bigger than the… gold market alone,” particularly if it evolves into both a store of value and a medium of exchange.
He previously estimated that capturing 17% of the global store-of-value market could push Bitcoin to $1 million per coin, with further upside if it gains traction as an international currency.
Bitcoin was trading around $74,500 with a market capitalisation near $1.4 trillion, compared with gold’s estimated $33.7 trillion market value, underscoring the gap implied by Bitwise’s thesis.
The Iran situation has intensified this narrative, with reports indicating ships may be required to pay transit tolls in cryptocurrency to pass through the Strait of Hormuz, highlighting Bitcoin’s potential role in sanctions-resistant payments and global trade settlement.
Beyond geopolitics, Bitcoin adoption continues to grow in high-inflation economies such as Argentina and Turkey, while corporations collectively hold more than 1.5 million BTC and roughly 11,000 merchants worldwide accept it as payment, reinforcing its dual-use case trajectory.
At the time of reporting, Bitcoin price was $74,021.40.