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Bitcoin\u2019s potential to challenge the dominance of traditional assets is growing as its utility expands from a digital version of gold to a functional tool for international trade, according to Bitwise chief investment officer Matt Hougan.<\/p>\n
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According to a Tuesday post<\/a> from Hougan, Bitcoin\u2019s total addressable market could eventually eclipse the $34 trillion gold market if it succeeds in functioning as both a global currency and a primary store of value.<\/p>\n This perspective gained traction following reports of Iran\u2019s proposal to use Bitcoin for transit tolls in the Strait of Hormuz, a move that highlights the asset\u2019s utility in bypassing traditional financial infrastructure.<\/p>\n \u201cIn a world where countries have weaponized their financial rails, Bitcoin is emerging as an apolitical alternative,\u201d Hougan said, noting that these geopolitical developments indicate the asset\u2019s reach extends far beyond being a mere commodity.<\/p>\n Hougan had previously estimated that Bitcoin could reach a price of $1 million per coin if it captured roughly 17% of the store-of-value market over the next decade. However, the current shift toward using the asset for cross-border payments and sovereign trade may force a significant upward revision of those price targets.<\/p>\n <\/p>\n \u201cIf Bitcoin starts to take on a dual role as both a store of value, like gold, and an actual currency, like the dollar, we may need to revise our targets higher,\u201d Hougan said.<\/p>\n While Bitcoin currently holds a market capitalization of approximately $1.4 trillion\u2014trading near $74,500\u2014it remains a fraction of the gold market\u2019s $33.7 trillion valuation. Despite this gap, practical adoption is accelerating in regions facing economic instability.\u00a0<\/p>\n In nations like Argentina, Turkey, and Venezuela, citizens are increasingly turning to Bitcoin to protect their savings from rapid currency devaluation and persistent inflation.<\/p>\n The trend is supported by data from a Coinbase survey<\/a> conducted in January, which found that 87% of Argentinians view blockchain technology as a path toward financial independence.\u00a0<\/p>\n This grassroots adoption is being mirrored at the institutional level, with private and public corporations now holding more than 1.5 million Bitcoin, worth roughly $116 billion, on their balance sheets.<\/p>\nA dual role in the global economy<\/h1>\n