Bitcoin’s ups and downs in the last few days have once again made the fast pace of the crypto market painfully clear. At the beginning of the week it went uphill for the crypto market, only to go into free fall on Wednesday – we had reported about the reasons in detail. Long-term implications on politics and macroeconomics are faded out thereby gladly, one hangelt oneself from week to week. The focus on the course driving lets the view blur on the large Narrative of Bitcoin. Therefore it is important and exciting to make considerations, which go beyond the horizon of the Daytradings. The (potential) importance of Bitcoin for international trading.
Iran has made a name for itself this week as far as Bitcoin is concerned. There is a rally mood and the Bitcoin has reached a new all-time high of almost 24,000 US dollars on the national trading exchange Exir. Hard to imagine for many how a homogeneous digital good can show such enormous price differences in an international comparison. Contrary to the logic of Bitcoin, there are also national, isolated crypto markets. This is not due to technological hurdles, but to national restrictions such as capital controls that do not permit international Bitcoin trading.
Bitcoin news about the regional cryptographic market
US sanctions, for example, have led to the Iranian currency rial losing enormous value against the US dollar. The devaluation of the domestic currency fires the Bitcoin news exchange rate – more and more rials have to be used to acquire Bitcoin. The result is absurd exchange rates like the recently tested $24,000. This Bitcoin news are above all of a theoretical nature, since some of the US sanctions provide for limited access to the US dollar currency market.
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Private individuals and companies from Iran are thus deprived of the opportunity to acquire US dollars in order to engage in international trade. This is a disaster for the economy and in particular for the export and import of oil, which is primarily handled in US dollars. The side effect of such devaluations are flight reactions to safe harbours. Since the US dollar is not or only very limitedly available for countries such as Iran or Venezuela itself, other fiat currencies must be acquired. Or Bitcoin.
Thus it came again and again in the course of larger devaluations of the national Fiatwährungen to flight reactions in Bitcoin. This was particularly visible only recently with the Turkish Lira. While the Turkish lira had to lose around 30 percent in its US dollar exchange rate, trading turnover on the national crypto exchanges increased by around 100 percent in the same period. This makes Bitcoin not only an escape currency, but also a politically highly interesting phenomenon, as it can create new independence with simultaneous conflict potential.