Bitcoin’s long-term upside may extend far beyond gold if its role evolves into both a store of value and a functional currency, according to Bitwise CIO Matt Hougan.

Bitwise’s chief investment officer Matt Hougan said Tuesday that Bitcoin’s total addressable market could exceed that of gold, especially if adoption expands beyond wealth storage into everyday financial use.

He pointed to recent geopolitical developments as an early signal of how such a transition could take shape.

“In a world where countries have weaponized their financial rails, Bitcoin is emerging as an apolitical alternative,” Hougan said.

Tensions involving Iran brought the currency use case into focus.

Authorities in Tehran have floated a proposal to levy transit tolls on ships passing through the Strait of Hormuz, with payments potentially accepted in crypto.

Hougan said the idea highlights how Bitcoin can operate outside traditional banking systems in situations where access to financial infrastructure is constrained.

It tells you that Bitcoin's total addressable market is probably a lot bigger than the $38 trillion gold market alone

Gold’s market capitalization is currently estimated at over $33.7 trillion, while Bitcoin trades near $74,500 with a total value of roughly $1.4 trillion, based on CoinGecko data.

Despite the gap, Hougan has previously argued that even partial penetration into the store-of-value segment could push Bitcoin’s price sharply higher.

He reiterated that capturing 17% of that market over the next decade could place Bitcoin near $1 million per coin, though he added that a dual role as both currency and reserve asset would likely push valuations beyond earlier projections.

“If 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.”

Use of Bitcoin as a hedge against inflation is already visible across several emerging economies.

In countries such as Argentina, Turkey, and Venezuela, persistent currency instability has driven individuals toward digital assets as a means of preserving purchasing power.

Data from a January Coinbase survey showed 87% of Argentinians believe crypto and blockchain can improve financial independence, while nearly three in four respondents pointed to digital assets as a tool to counter inflation-related challenges.

Corporate demand has followed a similar path, with data from BitBo showing that private and public companies now collectively hold more than 1.5 million BTC valued at over $116 billion, as firms continue adding Bitcoin to their balance sheets as a reserve asset.

Merchant adoption has also gained traction, with research from Springer Nature citing BTC Map data identifying around 11,000 businesses globally that accept Bitcoin as a form of payment, pointing to steady growth in its use beyond investment.

Since late February 2026, Bitcoin’s narrative as a resilient store of value has also been tested as a result of the ongoing geopolitical tensions.

Iranians have consistently moved capital into digital assets to protect against the devaluation of the rial; meanwhile, it has also emerged as a strategic tool for the state, as traditional financial markets and shipping corridors have been severely impacted by the threat of blockades in the Strait of Hormuz.

Bitcoin has also remarkably navigated the heightened volatility and has held above $60,000.

The asset has absorbed many global macro shocks and continues to trade within a firm consolidation range between $60,000 to $75,000, validating its status as an apolitical safe haven even in times of regional conflict.

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