Bitcoin and Ethereum are selling in Iran at a premium price of over $25000 and $1000 respectively after the Iranian authorities recognized the Crypto mining as an industry which is one of the reasons for the premium pricing.
In the peer to peer Iranian site, BitBarg, Bitcoin was selling at 1,090,000,000 Rial which is worth around $25,900 currently, another exchange Exir Tweeted yesterday:
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
It is, however, important to note that the price of Bitcoin has been selling for higher prices for a while as the government’s currency Rial has taken a hit due to inflation and people are resorting to safer assets like Gold and Bitcoin.
The possible reasons for the insane price demand in Iran:
The Iranian authorities declare Crypto mining as an industry: The Secretary of Iran’s Supreme Council of Cyber Space Abolhassan Firouzabadi said that the government has accepted Cryptocurrency mining like that of Bitcoin is an industry, as reported by Ibena. That being said the final policy for the same is yet to be declared.
The Iranian government had previously censored various Crypto exchanges and banned Cryptocurrencies back in April which still didn’t stop the citizens from hoarding Bitcoins. By the above news, it is evident that the government is looking at Cryptocurrencies in a good light and have recognized its importance.
Means To Bypass U.S sanctions: The United States has been imposing tough sanctions on Iran restricting it from accessing the U.S Dollars and precious metals, which is driving the Iranian government to adapt to Cryptocurrencies in order to bypass these sanctions which is why they have been embracing the idea of a state-backed Cryptocurrency.
The Iranian Rial has taken a death spiral against the U.S Dollar which has resulted in Iranians to accumulate other assets such as gold, But as Bitcoin is relatively easily accessible it has been used as a hedge against their currency. As the supply is limited in Iran it has caused this surge in price.
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