In economic recession, Bitcoin use fires in Egypt
People continue to turn to Bitcoin and other cryptomorphs for economic protection, even in the midst of a pandemic.
As the VOCID-19 pandemic has pushed the Egyptian economy into recession and deepened unemployment, more and more Egyptians see the benefits of Bitcoins trade and mining as an alternative source of income.
According to Al-Monitor, many Egyptians, mostly young people, are interested in cryptomorphs. Wael al-Nahhas, an economist and financial advisor to various investment institutions in Egypt, said:
„Many young Egyptians have begun to invest in small amounts, despite the increase in bitcoin value. They have started mining Satoshi, which is the 100 millionth of a Bitcoin, and are making profits of 4 to 5 percent daily with the difference between buying rates during the period of declining demand and selling rates at the time of peak demand, plus some quarterly or annual profits from unexpected increases in Bitcoin rates. ”
Unemployment in Egypt jumped from 7.7 percent during the first quarter of 2020 to 9.6 percent during the second quarter, meaning that more than half a million Egyptians lost their jobs, according to recent figures from the Egyptian Central Agency for Public Mobilisation and Statistics.
The Bitcoins deal looks very attractive.
Muhammad Abd el-Baseer, a Bitcoin miner and member of the Bitcoin Champion Community of Egypt, said other factors also made it easier for people to turn to Bitcoin. He said the move to work from home, reducing working hours, and new curfews encouraged many Egyptians to invest in Bitcoin in their spare time. He estimates that more than 16,000 Egyptians have joined Egypt’s Bitcoin Community. However, he noted that this number may be greater, as people can teach their friends and family how to invest in cryptomorphs.
But while more Egyptians are interested in mining and trading in cryptomoreds, many are concerned that people may be targeted and accused of fraud without proper legislation. A law clarifying which activities may or may not be considered legal around cryptomorphs may soon arrive, according to experts.