Hi YXI friends,

Since the Ceasefire, US-Iran strikes have largely halted. However, Iran continues to keep the Strait of Hormuz closed as a bargaining chip, potentially charging $1 per barrel for ships to pass through. Unsurprisingly, Iran is asking for payments set in advance, in Bitcoin or Chinese yuan.

While it's still very early to tell how the negotiations will pan out, I do wonder about the potential rise of Bitcoin in emerging markets’ central bank reserves. Remember, after Russia invaded Ukraine and had its assets frozen by the US, many EM nations have begun untangling themselves from the US financial systems. China, Turkey, and Brazil are among the largest gold purchasers.

But now there is also a case for Bitcoin to be considered a reserve asset. While Gold is harder than the US Dollar, it’s not easily transferable or used as an actual payment method. Bitcoin, which can be transferred and verified in seconds, could become a much more useful asset during periods of geopolitical uncertainty.

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