The government in Iran has been feeling The Heat ever since sanctions were levied against it by
the US and other countries around the world.
Following which the Iranian currency rial has been getting devalued and keeps losing it's
buying power.
As a result the people are facing feeling increased difficulties. The Iranian oil which has been historically its strength is also not able to help the country much due to the ongoing sanctions.
In the current development of events the Iranian government has legalized the cryptocurrency
industry.
The news of the Iranian Governments recognition and legalizing of the cryptocurrency mining
industry in Iran has given a new fillip to the confidence of the supporters and enthusiasts of bitcoin
and cryptocurrencies in Iran.
Subsequent to the to this positive news people in Iran started lining up to buy bitcoins. Due to
this frenzy the price of bitcoin sky rocketed and reached upto $26000.
This price is more than four times the price prevailing in the international markets.
Iran being the latest country to be bitten by the cyptocurrency bug is observing an increased demand for bitcoins.
Another factor which makes the people and the government of Iran incline towards
cryptocurrencies and bitcoin is the spiraling inflation and devaluation of the Iranian currency,
the Rial.
The Iranian economy is following the path followed by Venezuela.
The price variation of bitcoin in Iran and other countries creates a huge arbitrage opportunity. However with little business ties and difficulty for outsiders and foreigners to trade there bitcoins in Iran
even if one were to trade bitcoins for Iranian rials they would have a currency that is devaluating fast and has even less takers outside Iran.
However human ingenuity knows no bounds and surely there would be some work around and business opportunity waiting to be discovered in this new development in Iran.