In developed countries, Bitcoin is viewed as a profitable investment rather than as a form of payment or store of value. What is rarely evaluated, however, is the impact that cryptocurrencies can have on countries that are facing devastatingly high inflation levels, lack access to banking services, or are unable to participate in traditional investment markets.
In developed countries, Bitcoin is viewed as a profitable investment rather than as a form of payment or store of value. What is rarely evaluated, however, is the impact that cryptocurrencies can have on countries that are facing devastatingly high inflation levels, lack access to banking services, or are unable to participate in traditional investment markets.
Approximately 29 percent of Iranians surveyed have managed to store approximately $5,000 of their wealth in crypto, a growing trend in the area. To fully understand this, take into account that 14 percent of respondents make more than $10,000 a year.
One such recent survey revealed the growing importance of digital currencies in these economies. A Persian Telegram group survey conducted by Gate Trade, an analytics firm, spoke to 1,650 Iranian bitcoin users about their interaction with the digital currency. The data was revealing, showing that 25 percent of users earned around $500 to $3000 a month through cryptocurrency, with 35 percent earning that income through mining activities and 58 percent earning their income through trading through global and local exchanges.
Even more surprising, 70 percent of respondents would be interested in learning more about potentially growing local mining businesses. This interest is mainly due to the impact that KYC laws have on Iranians, which typically excludes them from some of the larger exchanges in operation. In fact, 83 percent of Bitcoin users said that they need more access to exchanges in order for growth to happen. This is something that can be seen in other countries facing the same problems, such as China or Argentina.
Still, this setback has actually proven beneficial for the local market. Besides helping them to develop their own Bitcoin economy, their prices are largely unaffected by the prices of external markets, which make it possible for many to hold their Bitcoin long-term without worrying about losing a lot of their initial value.
Take, for example, Mahmoud Eskandari, a Tehran-based blockchain developer who uses Bitcoin for a number of things. Besides holding Bitcoin, Eskandari also liquidates cryptocurrencies as a second job and sends Bitcoin to his relatives as well as Iranian students to help pay for tuition and school-related expenses.
About his own experience and observations, Eskandari states:
“Today it is clear to me that more and more people are using bitcoin,” Eskandari told CoinDesk. “Bitcoin has not had a profound impact on the lives of the Iranian people, but its use is growing among the people and I can see that.”
Eskandari isn’t the only one thriving from using cryptocurrency, however. Approximately 29 percent of Iranians surveyed have managed to store approximately $5,000 of their wealth in crypto, a growing trend in the area. To fully understand this, take into account that 14 percent of respondents make more than $10,000 a year.
While Bitcoin may not be a viable currency or store of value in the U.S. and in other areas, we need to remember the true value of digital currency for those who may not have access to the same financial tools or privilege that we do.
