Large-scale protests erupted in Tehran after Iran’s national currency slid to record lows against the US dollar.
Demonstrators blamed the collapse of the rial on prolonged economic mismanagement and central bank policy failures.
The sharp decline has wiped out household savings and intensified public anger over living costs.
Bitwise chief executive Hunter Horsley said the crisis highlights the need for alternative stores of value.
Economic mismanagement is the story of the past, present, and future, and Bitcoin is a new way for people to protect themselves.
Hunter Horsley said.
Horsley argued Bitcoin offers individuals a hedge against collapsing national currencies worldwide.
The rial has lost more than 40% of its purchasing power since the brief war with Israel in June.
The currency is now trading near a record low of roughly 1.4 million rial per US dollar.
Alex Gladstein said Iran’s currency decline shows a dramatic long-term erosion of value.
The official rate in the early 1980s was 70 per dollar.
Alex Gladstein said.
Political uncertainty has deepened after the resignation of Iran’s central bank governor Mohammad Reza Farzin.
Crypto trading remains legal in Iran, but rules around self-custody and usage remain unclear.
Bitcoin mining is tightly regulated despite Iran’s access to cheap electricity.
Matthew Sigel said the government has discouraged locals from engaging in Bitcoin mining.
Iran cracked down on unregistered Bitcoin mining and even offered rewards for citizens to report neighbours.
Matthew Sigel said.
Sigel criticised the timing of the policy as demand for alternative stores of value surged.
Truly diabolical policy sequencing, who says Bitcoin isn’t a luxury good.
Matthew Sigel said.
Analysts estimate Iranians could mine Bitcoin for around $1,300 per coin using subsidised power.
Strict regulations have prevented citizens from benefiting from those low production costs.
Iran’s financial system is also strained by international sanctions linked to its nuclear programme.
Sanctions have limited access to global banking networks and weakened domestic lenders.
State-owned Bank Melli collapsed in October, putting the savings of over 42 million people at risk.
Iran’s central bank warned that eight additional banks could face dissolution without reforms.
If they are not reformed, we will move towards dissolution and merger.
Iran’s central bank said.
The situation worsened after crypto exchange Nobitex suffered an $81 million hack in June.
Iranian crypto flows fell 11% in the weeks following the breach amid regional conflict.
The combined pressures have intensified debate over Bitcoin’s role during economic crises.
At the time of reporting, Bitcoin price was $87,219.22.