Beyond ‘digital gold,’ Iran conflict forces a rethink of the nature of bitcoin

What Happened

Bitcoin gained 12% since U.S. and Israeli airstrikes on Iran began February 28, outperforming gold and stocks. Bitwise CIO Matt Hougan argues bitcoin functions as both digital gold and a currency option bet. Iran's announcement to collect $1-per-barrel tolls in bitcoin through the Strait of Hormuz represents a sovereign state using cryptocurrency for commerce. This challenges the traditional view of bitcoin as a risk-off asset and suggests geopolitical conflicts may increase its value.

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