Bitcoin has always been prized as a potential alternative to failing financial systems.
Even when it was first created by the mysterious and enigmatic Satoshi Nakamoto, Bitcoin was hailed as a way to fight against the centralization and incredible manipulation which consistently occurs within the traditional financial and economic sectors. It is difficult, however, for investors to turn away from the original economies which helped to make them wealthy.
But when the economy truly begins to flounder and currency prices start to fall rapidly, it is natural for investors to attempt to turn to new ways to facilitate the economic transactions which are integral to a successful economy and business. In Iran, this exact scenario continues to play out. The economy of Iran has been in a downward spiral, with the price of the Iranian Rial falling significantly in the past few months.
The currency continues to depreciate at depressing rates as over-regulation has a stranglehold over the market is consistently increasing. Specifically, a decision by some Iranian authorities to restrict currency transactions all over the world has led to a decrease to overall sentiments of the investment and trade community. Though minor efforts by the government to calm the waters have had marginally successful effects, it is clear that the currency continues to devalue.
Some investors have actually resorted to illegally purchasing gold on the black market in an attempt to avoid the crashing prices of the currency native to the Iranian economy. However, the government of Iran has worked to crack down on these illegal transactions. Part of the motivation is an attempt to re-establish volume in the market and actively encourage direct participation. But investors are caught between the efforts of law enforcement and the crashing currency.
In a bid to escape the troubles of their own fiat economy and the falling prices of the Rial, many investors are pouring their funds into Bitcoin, the price of which has fallen—but not nearly as quickly as the Rial. The hope is that the Rial will continue to fall in value, but Bitcoin can either rise or moderately fall. Eventually, investors are hoping that the Rial’s price will stabilize, at which point they will be willing to put their money back into the Rial.
It isn’t just Bitcoin which consumers and investors within Iran are looking towards to fix their tricky financial situation. Instead, the community is also looking into the prospect of hundreds of alternative digital currencies in order to hold their funds with less chance of the volatile price crash currently facing the Rial in the Iranian economy.
But investors in Iran should also remember that the cryptocurrency community is facing its own set of troubling problems. The price of Bitcoin hit a recent all time low this past month, and its price struggles to stabilize anywhere near where it once was. Additionally, the prices of altcoins have fallen when paired with Bitcoin.