Next Bitcoin Surge Could Come in Response to Iranian Protests and Internet Shutdown
- Protestors in Iran are burning down government buildings, banks, and other locations.
- Presently, motorists in the country can only use 60 liters of fuel monthly.
The government in Iran recently decided to raise the price of gas by 50% as they ration gas, and it hasn’t sat well with the locals. The changes seem to be connected to the limitations by US sanctions on Petro Dollars, which meant that the country had to reduce their subsidies. The new was given to local on Friday, stating that no more than 60 liters of fuel could be purchased per motorist monthly. Anything extra will cost double. According to reports from CCN, protestors aggressively took to the streets of the country to show their disdain, chanting, “Shah of Iran, return to Iran!”
Protesters of all ages in #Iran chant:
“Shah of Iran, return to Iran!”
Protests began as gasoline prices tripled overnight in the oil-rich country without prior notice by the regime, and rapidly escalated into anti-regime demonstrations. #IranProtests pic.twitter.com/FP1VUsQyek
— Reza Behrouz (@RBehrouzDO) November 16, 2019
The protestors also left their cars in the road, allowing them to block off major highways in Tehran and cause massive disruptions in traffic. However, they didn’t stop there. Some Iranians chose a more direct way to show their opposition burning down gas stations, government buildings, and banks. There is footage posted in the video on the Twitter post, showing the burning down of the central bank of Iran.
Central Bank in Iran is being burnt to the ground by protestors.
Shit is getting real
— Jacob Canfield (@JacobCanfield) November 16, 2019
Consumers that tend to have Bitcoin have put themselves in a much safer position to protect their wealth, even with all of the turmoil in the region. Anyone that hasn’t stored any Bitcoin is most likely going to do so, aiming to create some stability in their finances during these tumultuous times.
Right now, Twitter is flooding with news in Iran, as security authorities continue to shoot protestors in the streets without any warning. One of the many clips can be seen in the post below.
— Masih Alinejad 🏳️ (@AlinejadMasih) November 17, 2019
With all of these posts coming out, the Iranian government seems to be working on damage control. In response, it has shut down the internet in the entire nation. As the regime is still struggling to contain and control protestors, NetBlocks reports that there’s only 7% of the typical internet use being reported, which is bad for citizens, businesses, and even Bitcoin miners.
Essentially, anyone that requires internet use is unable to proceed with their operations. Anyone that is impacted by the blackout is left to decide if the lack of ability to work is enough of a reason to sell when they can. If many miners and other holders choose to sell, the price of Bitcoin may end up drastically dropping.
Along with the decision to shut down the internet, the Tehran authorities are also blocking their citizens from leaving Iran and trekking into a neighboring country, Iraq. Iraq closed their border, though at the request of Tehran, leaving citizens with only the option staying where they are to wait out the issues. Considering the continuing circumstances, the store of value that Bitcoin is becoming could be attractive to Iranians.
Hong Kong protestors, however, have recognized this option. Just this summer, CoinDance recorded a spike in peer-to-peer transactions in Hong Kong, following a surge in protests. The volume of the bitcoin exchange reached a milestone in October with its all-time high, coinciding with the escalation of demonstrations.
Unfortunately for locals, the situation that is presently found in Iran is much more tragic. Between the road blockages, the lack of access to the internet, and the major violence, citizens are in a tough spot, which is why the writer of CCN’s recent article on the matter believes that Bitcoin will be purchased at a rapid rate after citizens are given access to the internet again.
In purchasing Bitcoin, the locals have the ability to get out of the current financial system, protecting their wealth in a place that isn’t regulated or governed by any country at all. Bitcoin, being the dominant cryptocurrency, gives Iranians a way to get out of Iran when it becomes possible again, which may outweigh the disadvantage of volatility.