Bitcoin Is Becoming More Valuable to Iranians Amid Tensions With US - Bitcoins Channel
(Source: cointelegraph.com)

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(Original link: cointelegraph.com)

Bitcoin Is Becoming More Valuable to Iranians Amid Tensions With US Date: 0 Earlier this week, the world’s flagship crypto asset saw its value surge from around the $8,000 mark to just over $8,430 within an hour’s time. This latest price action came after the Iranian government decided to launch a missile attack on an Iraqi military base housing American troops. However, it bears mentioning that Iran’s actions were prompted by United States President Donald Trump’s decision to eliminate Iranian general Qassem Soleimani — a controversial figure in the West but loved by the masses in his home country. Sponsored Links The overall value of Bitcoin (BTC) is now up by around 15% this year, but since President Trump recently downplayed the situation in Iran at a White House press conference — saying that the Middle Eastern power is ready to stand down — the currency’s price slid back down to under the $8,000 mark. With that being said, a whole host of prominent figures, including Galaxy Digital’s Mike Novogratz and Digital Asset Capital Management’s Joshua Green, seem to agree with the notion that the aforementioned rally was definitely linked with the events that recently unfolded in Iraq. Also worth exploring is the fact that Bitcoin’s price increase has followed an increase in the value of other safe-haven assets such as gold and oil. To put things into perspective, the yellow precious metal is trading close to its highest levels since March 2013. Meanwhile, the price of Brent Crude is up by 2.5% to around $70 per barrel — which could possibly be in relation to concerns over the global oil distribution being disruption because of the U.S. and Iran’s escalating military tensions. Providing his thoughts on the matter, Mati Greenspan, the founder of QuantumEconomics.io, was quoted as saying, “The resemblance between digital gold and the physical stuff is uncanny. They’ve basically been moving in a very similar pattern throughout most of last year.” Do Iranians really believe in the power of Bitcoin? With all of the news stories recently floating on the internet that claim people in Iran are scurrying to get their hands on Bitcoin, especially in the wake of the recent geopolitical tensions that have been rising in the region, Cointelegraph reached out to Hadi Nemati, an Iranian digital currency specialist and chief operating officer of Bitfolio Capital — an open-end crypto hedge fund. He pointed out the following: “After the summer of 2019, many Iranians came to know about Bitcoin because of all the mining news and the use of electricity associated with the same which was vastly covered by various state media outlets and newspapers. Bitcoin, on a mass scale, is being seen as a speculative alternative asset and digital money.” When asked about which section of people among the local masses are actively making use of Bitcoin the most, Nemati pointed out that a threefold categorization can be made: Miners: This, in Nemati’s opinion, is the most dominant group of the three — both on an industrial and retail scale. However, miners are forced to liquidate their BTC holdings regularly in order to meet their operational costs. Investors: These individuals, as per Nemati, are mostly buying Bitcoin for long-term investment purposes and are using the asset to hedge their capital against the inflation of the Iranian rial. Additionally, in his opinion, even though Bitcoin is not as popular as many other foreign currencies or precious metals such as gold or silver, adoption has been increasing steadily in recent years. Active traders: This group operates mostly in the local crypto market — at the corporate and retail levels — because, according to Nemati, Bitcoin rarely gets used for day-to-day transactions due to a lack of infrastructure. Not only that, even the Central Bank of Iran has yet to issue clear regulatory guidelines regarding the use of digital currencies. In regard to why the popularity of BTC has surged so dramatically in Iran over the past 24 months, Cointelegraph reached out to Mahyar, a Tehran-based crypto miner and investor. He pointed out that since many Iranians do not possess international accounts, they are able to use Bitcoin as a means of receiving cross-border payments in a seamless, hassle-free manner. On the subject, Mahyar added: “People send bits to a currency exchange and receive cash. Most bits also come from farms, and the dollar revenue is very important to people. I think big companies are doing their best to avoid taxation as well.” Another reason he believes Bitcoin’s popularity has increased so much in recent years is because of the anonymity benefits that most cryptocurrencies bring to the table. Not only that: Owing to the fact that BTC can be used by anyone irrespective of their financial background, more and more people are willing to make use of this novel asset class. On the subject of whether there currently exist any easy conversion avenues for people to liquidate their BTC holdings, ...