Iran, Protests Spread as Rial Plummets… Bitwise CEO: "Bitcoin, a Means to Defend Against Currency Collapse"

As the value of Iran's currency, the rial, plunged to an all-time low and protests have spread, opinions emerged that Bitcoin (BTC) could serve as a defense against such a currency collapse.

According to Cointelegraph on the 30th (local time), the Iranian rial recently fell to about 1.4 million rials against the US dollar, showing a record weakness. This is the result of purchasing power dropping by more than 40% since the two-week armed conflict with Israel in June.

With currency instability intensifying, policy uncertainty deepened as Mohammad Reza Farzin, governor of Iran's central bank, resigned.

Regarding this situation, Hunter Horsley, CEO of Bitwise, said, "Bitcoin can be an alternative for protecting personal assets from a collapse in currency value." He argued, "The consequences of economic mismanagement run through the past, present, and future," and added, "Bitcoin is a new means for people to protect themselves."

In Iran, cryptocurrency trading is allowed, but regulations surrounding personal wallet custody and mining remain unclear. In particular, Bitcoin mining is subject to strict oversight.

Matthew Sigal, head of VanEck Research, said, "The Iranian government has cracked down on unauthorized Bitcoin mining and even introduced policies that reward reporting neighbors," calling it "a paradoxical move" at a time when demand for a store of value is surging. He pointed out that, given Iran's low electricity costs, Bitcoin mining costs were once only about $1,300 per coin, a large gap from current market prices.