Bitcoin as Gold and Currency: Why the Iran Conflict Could Transform Its Role
Geopolitical crises have long influenced global finance—but now they could propel bitcoin into a new, more consequential role. According to Matt Hougan, Chief Investment Officer at Bitwise, escalating tensions around Iran are prompting investors and everyday people to reconsider cryptocurrency—not merely as “digital gold,” but as an alternative currency that operates beyond political borders.
Bitcoin’s Dual Role
Historically, bitcoin has most often been compared to gold: an asset people buy to preserve wealth during turbulent times. But now, Hougan says, it’s beginning to fulfill a second function—serving as a medium of exchange, especially where traditional banking systems are inaccessible or under sanctions.
Imagine living in a country where the government freezes bank accounts or bans cross-border transfers. In such a scenario, even a small amount of bitcoin in your wallet can act as a “financial parachute”—not because it appreciates rapidly, but because it cannot be easily blocked or disconnected from the system.
Hougan believes that if bitcoin solidifies both roles simultaneously, its market capitalization could surpass $34 trillion—the current total value of the global gold market.
Why Now?
The conflict in Iran is not just a regional event. It impacts global financial channels. When countries impose sanctions, they often cut each other off from SWIFT—the international banking transfer system. This renders conventional money useless for millions of individuals and businesses.
Under such conditions, bitcoin becomes an “apolitical” alternative: it belongs to no single nation, cannot be shut down by government order, and operates 24/7. Of course, this doesn’t mean everyone will start paying with bitcoin at local stores overnight. But even limited usage—for sending funds, hedging against devaluation, or bypassing restrictions—already creates tangible value.
What’s Holding Bitcoin Back from Becoming a Full-Fledged Currency?
Despite its potential, Hougan candidly acknowledges: mass adoption as a currency remains distant. Here are the three main barriers:
- Volatility — Bitcoin’s price can swing sharply within a single day, making it impractical for everyday purchases.
- Infrastructure — It’s still not easy or safe to buy, sell, or store bitcoin in many countries.
- Regulation — Without clear rules, banks and businesses hesitate to engage with cryptocurrency.
Until these issues are resolved, bitcoin will remain more of a “crisis hedge” than an everyday currency. Yet even that role already makes it a significant player in the global economy.
Key Takeaways
- Bitcoin can serve two functions: as gold (a store of value) and as currency (a medium of exchange).
- Geopolitical conflicts—like the situation around Iran—are increasing demand for apolitical financial tools.
- Sanctions and the blocking of traditional systems (e.g., SWIFT) make bitcoin attractive for circumventing restrictions.
- For mass adoption, bitcoin needs price stability, user-friendly infrastructure, and clear regulatory frameworks.
- Experts avoid price predictions but highlight growing fundamental value for the asset.
What does this mean for ordinary people? Even if you don’t plan to trade cryptocurrency, bitcoin is becoming an increasingly visible “emergency valve” in the global financial system. In the future, it may help people retain access to their funds—even when governments or banks attempt to restrict that access. This isn’t a call to buy; it’s a reminder: the financial world is changing, and new tools emerge for real reasons.
— Editorial Team
