Due to the potential US attack on Iran, analyst Brian Cohen shared an important scenario analysis of the Bitcoin market ($BTC). Cohen stated that a potential conflict could both reduce the supply of bitcoins and accelerate digital dollarization through stablecoins. According to the analyst, Iran has long been using Bitcoin not only as an investment tool but also as an economic instrument due to sanctions. Thanks to subsidized industrial mining operations powered by electricity, the country has converted its energy into bitcoins, gaining indirect access to the global system. Redirecting some of the mined $BTC through government channels positions Iran as a constant "marginal seller" in the market. Cohen stated that damage to Iran's mining infrastructure in the event of a potential conflict could lead to a temporary drop in global hash rate. This could decrease the number of new bitcoins entering the market daily, shifting production to more stable countries, especially Western companies with publicly traded shares and a tendency to accumulate $BTC. He argued that such a shift could mean a transformation from a "forced seller" to a strategic holder.
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Due to the potential US attack on Iran, analyst Brian Cohen shared an important scenario analysis of the Bitcoin market ($BTC). Cohen stated that a potential conflict could both reduce the supply of bitcoins and accelerate digital dollarization through stablecoins. According to the analyst, Iran has long been using Bitcoin not only as an investment tool but also as an economic instrument due to sanctions. Thanks to subsidized industrial mining operations powered by electricity, the country has converted its energy into bitcoins, gaining indirect access to the global system. Redirecting some of the mined $BTC through government channels positions Iran as a constant "marginal seller" in the market. Cohen stated that damage to Iran's mining infrastructure in the event of a potential conflict could lead to a temporary drop in global hash rate. This could decrease the number of new bitcoins entering the market daily, shifting production to more stable countries, especially Western companies with publicly traded shares and a tendency to accumulate $BTC. He argued that such a shift could mean a transformation from a "forced seller" to a strategic holder.