Egypt: Bitcoin use growing due to the recession
An ever-growing number of Egyptian citizens are discovering Bitcoin and the revenue opportunities offered by cryptocurrency
As the COVID-19 pandemic has pushed the Egyptian economy into recession and increased the unemployment rate, a growing number of people are discovering Crypto Trader app and the opportunities offered by cryptocurrency.
According to an article recently published by Al-Monitor, many Egyptians, particularly the younger age groups, have expressed a strong interest in cryptocurrency. Wael al-Nahhas, economist and financial advisor at various investment institutions in Egypt, commented:
„Many young Egyptians have begun to invest in small amounts, despite the increase in the value of Bitcoin.
They have started to extract satoshi, a unit of value equivalent to 1/100.000.000 Bitcoin. Every day they make profits between 4 and 5 percent thanks to the difference between the purchase price during times of low demand and the sale price during peak demand. In addition, they also make good quarterly and annual profits by taking advantage of unexpected increases in the price of BTC“.
This year, unemployment in Egypt has increased significantly: from 7.7% in the first quarter of 2020 to 9.6% in the second quarter. In other words, more than one million people suddenly lost their jobs: these figures have been confirmed by the Egyptian Central Agency for Public Mobilisation and Statistics.
Therefore, Bitcoin trading seems a very attractive alternative.
Muhammad Abd el-Baseer, BTC miner and member of Bitcoin Egypt Community, explained that the reasons for this approach to cryptocurrency are many. The transition to work from home, the reduction of working hours and the introduction of curtains has prompted many Egyptians to invest in Bitcoin in their free time. Currently the Bitcoin Egypt Community has over 16,000 members, but the real number of people interested in BTC in Egypt could be much higher as people explain to family and friends how to invest in cryptocurrency.
However, as there is still no proper regulation in Egypt, many people fear that miners and cryptocurrency traders may be accused of fraud by law enforcement agencies. As the popularity of such assets is increasing sharply, according to experts will soon be clarified what the government considers legal or not.