Without entering the political sphere too much, recent tensions between the United States and Iran has caused the value of the Iranian currency, the Iranian Rial, to fall dramatically against the US Dollar. Because of this, many experts are starting to suggest that, should the Rial continue to fall, people will take to cryptocurrency to start saving and using money, in an attempt to escape the falling value of the Rial and the implications this may have>
Cryptocurrency isn’t new in Iran, we can already see that there is a demand for it, recent reports by the Iranian Parliaments Economic Commission state that already, Iranians have spent over $2.5 Billion on cryptocurrencies.
Why are cryptocurrencies beneficial here?
Well, as we very well know, cryptocurrencies are part of their own market and therefore won’t be affected by the falling Rial. Should this continue, people in Iran may find they are able to control their finances a little better, with investment in cryptocurrencies. Through this, they will get better exchange rates and will of course be able to buy commodities for a fairer rate.
There are of course some inherent risks to this, investing in cryptocurrency isn’t an entirely safe bet either, but, through transparency, at least with this method, Iranians will be able to make wise decisions, instead of simply just relying on a Rial market that is being heavily influenced by the political sphere.
This in essence is the beauty of cryptocurrencies. Decentralisation provides normal people with real control of their finances and thus can provide them liberation from crashing markets that are being crushed by external factors. Cryptocurrencies are inherently anti-establishment and therefore the can be used within this sort of climate to give power back to the people. It’s not an anarchist sentiment, rather, it just gives people a wise new option and often, a solution to their problems.
Hopefully things do settle out in Iran soon enough, even so though, increased interest in cryptocurrencies in the area will give the community a big boost and of course will have a positive impact on the cryptocurrency markets overall. This isn’t going to have a big impact just yet, but eventually, we could see some crypto-waves coming out of Iran for sure.