Bitcoin price reaches a new high in Iran as its national currency Rial hits a new record low against the US Dollar which is the result of Trump’s sanctions on the country. During this crisis, facts reveal Bitcoin and crypto is the only hope of these people.
Bitcoin price spikes in Iran as Rial hits a new record low
Everyone is eagerly awaiting the bull rally to hit the crypto market hard. But looks like Iran has already started way before the world. According to the Exir website, a local crypto exchange of Iran, 1 BTC = 96,000,000.
The exchange has shared this Tweet two days back:
Price of BTC is nearly at its all time high in Iranian local currency. Bitcoin bull markets already started in Iran as Rial price goes down against USD.#ExchangeIran #BitcoinIran #Iran #Bitcoin #IranEconomy pic.twitter.com/VKTZ47UDOo
— EXIR (@EXIR_Official) September 3, 2018
The similar thing happened 3 months back when the sanctions first came into effect and Bitcoin price soared. Reportedly, Iranian currency, Rial has plunged dangerously, hitting new records.
— EHA News (@eha_news) September 5, 2018
Iranian rial is constantly sinking down. According to the local media channel, the national currency has been trading at over 150,000 rials to $1USD in the currency exchange shops of Tehran, capital of Iran.
A Redditor, mahan_r, shared regarding the Bitcoin price graph by Exis above:
“I am an Iranian from Iran. There are two types of USD prices in Iran
- official price = 4200 Toman
- black market price = ~14000 Toman, It was the last price when I write this post. Also 1 Toman equals 10 Rials.
We (normal people in Iran) cannot buy the USD with an official price. We can only buy USD on the black market.
Also, that chart is for ~2 days ago (USD price was 12800 Toman on that day I think).
If I buy 1 BTC in Iran NOW, I should pay up to 100,000,000 Toman! for example if Bitcoin price is 7300 USD, 7300 × 14000 = 102,200,000 Toman !!! That’s very high!
We have a big inflation in our economy (about 250% inflation!!!) That’s why everything in my country is very expensive. USD price in Iran is going up every day, and all Iranian people are losing their purchasing power every day… this is our awful economy…! All Iranian people are sad and angry because of it!”
Bitcoin is the only hope
This collapse in Iran’s national currency has been driven by US President Donald Trump’s decision to pull out America out of the nuclear deal in May. As the economy of the country deteriorates and the fear of US reinstating the sanction against Tehran to shut down the oil exports arises, its national currency is getting affected really bad. Each passing day, Iranian rial (IRR) is hitting a new record low against the US dollar.
This comes as no surprise that people of Iran and other countries going through distress are turning to Bitcoin.
Also, this tweet shows a drastic difference in the way Bitcoin is being used and valued in the economies, especially those going through tough times and crises.
First screenshot: Upper West Side, Manhattan
Second screenshot; Upper East Side Manhattan
Third screenshot: Iran
Fourth screenshot: Venezuela pic.twitter.com/b41D8YWXLE
— شتر دیدی؟ ندیدی (@arbedout) August 25, 2018
Additionally, the local media source also reported that the Secretary of Iran‘s Supreme Cyberspace Council revealed crypto mining has been accepted as an industry by various ministries.
Though Abolhassan Firouzabadi, secretary of Cyberspace Council stressed that mining of cryptos has been approved, official legislation has yet to be introduced in the country.
Apart from developing a platform for crypto mining regulation, the government is also apparently planning a national cryptocurrency to invade the US sanctions. Actually, the draft for this state-backed crypto is already ready as reported at the end of last month.
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Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.