The potential market size of Bitcoin could go beyond the $34 trillion that the gold market is worth if it is developed not only as a store of value but also a global currency, Bitwise Chief Investment Officer Matt Hougan said. On Tuesday, Hougan pointed out the ongoing geopolitical tensions that serve as a BTC use case in “a currency-like manner”; for example, Iran’s Carte Rouge project, where they would charge a toll for the ships that navigate the Strait of Hormuz, could be paid via crypto.
Hougan had also mentioned before that if Bitcoin were to get to 17% of the store-of-value market within a decade, its price could be a whopping one million dollars per coin. Adding another major role as the world’s currency might increase that number significantly. “Should Bitcoin start to perform this double function of being a store of value like gold and at the same time a currency, like the dollar, then probably we will have to set our target prices even higher, “ he said.
Gold price is at $4,854 an ounce with a market cap that is estimated to be above $33.7 trillion as of Wednesday. Bitcoin is changing hands around $74,500 with a market capitalization of about $1.4 trillion, according to CoinGecko.
Also Read: BTC Price Drops After US-Iran Talks Fail as Pressure Builds
Bitcoin is effectively serving as a store of value in countries where inflation and currency depreciation are persistent. The results of a Coinbase survey conducted in January showed that about 87% of Argentines spoke positively of crypto and blockchain.
Information from BitBo reveals that private and public companies combined are holding more than 1.5 million BTC, at a price of over $116 billion, which they have incorporated in their treasury strategies.
Also Read: US-Iran Talks Fail in Islamabad, Raising Fears of Regional Escalation
Besides being a store of value, BTC is gaining ground as a payment rail. Springer Nature, quoting data from BTC Map, noted around 11,000 merchants worldwide who at present accept Bitcoin. Instances such as Iran’s planned Strait of Hormuz toll mechanism demonstrate how governments and companies can use decentralized cryptocurrency networks as an alternative to conventional financial systems when these are inaccessible or unavailable.
Also Read: Iran Crypto Payments Trigger Global Shipping Sanctions Concerns: Chainalysis
