Our Space episode with @jacksonaltonh and @TheStreet on the potential use of Bitcoin in Iran is more relevant than ever. Last week, the U.S. Department of the Treasury sanctioned and designated two Iranian shadow companies created by the Iranian regime and approved by their main insurance regulator to bypass sanctions. The firms were reportedly offering marine, security, and insurance services with Bitcoin and other digital assets in order to prop up revenue decimated by Operation Epic Fury. It turns out that these firms were a scheme to extort vessels attempting to conduct commercial passages through the Strait of Hormuz. Does this mean Bitcoin is mainly used for illicit purposes? Not at all. Per @Chainalysis, out of trillions of dollars in volume on a yearly basis, illicit activities with Bitcoin and other digital assets represent less than 1% of the yearly volume. With the rise of geopolitical conflicts, we have seen a sharp decline in Bitcoin use for illicit activities, but a steep increase in dollars on the blockchain since 2022. As a matter of fact, Bitcoin's transparency helps forensic research firms prosecute bad actors in real time. What this situation tells us is that Bitcoin and stablecoins are in high demand in countries experiencing high inflation rates, driven by a rising need for alternatives to their local currencies. As Secretary of the Treasury Scott Bessent said: “With its economy in freefall and inflation in the triple digits, the regime is desperate for cash.”(Ξliézer Ndinga)