Bitwise CEO: Iran Currency Collapse Sparks Protests, Highlighting Bitcoin's Role as Value Protection Tool

Following the historic low exchange rate of the Iranian rial to the US dollar, massive protests have erupted in Tehran, with citizens attributing the continuous devaluation of their currency to the central bank's long-standing fiscal and monetary policy mistakes. Bitwise CEO Hunter Horsley stated on X platform that economic mismanagement has been prevalent in the past, present, and future, and Bitcoin provides a new way for ordinary people globally to protect their wealth amidst significant devaluation of fiat currencies. Since the two-week conflict with Israel in June this year, the purchasing power of the Iranian rial has decreased by over 40%, with the official exchange rate now around 1.4 million rials to 1 US dollar. Alex Gladstein, Chief Strategy Officer of the Bitcoin Human Rights Foundation, mentioned that in the early 1980s, the official exchange rate in Iran was only 70 rials to 1 US dollar, highlighting the significant depreciation. Meanwhile, the Iranian central bank governor has resigned under protest pressure, further exacerbating market uncertainty. Despite allowing cryptocurrency trading, Iran still maintains strict regulations on self-custody and mining. Matthew Sigel, Director of Research at VanEck, noted that Iran recently cracked down on unregistered Bitcoin mining activities and even encouraged citizens to report their neighbors. Analysis suggests that amidst sanctions, pressure on the banking system, and continuous devaluation of the local currency, discussions on Bitcoin as a decentralized store of value are on the rise.

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