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When the Iranian Rial drops to a historic low against the US dollar and the local currency-denominated Bitcoin price surges over 2600%, this is not the beginning of a wealth celebration but rather a reflection of a deep economic crisis.
On the surface, the price of buying Bitcoin with the local currency skyrockets to astronomical levels. But behind this shiny digital shell, we uncover a harsh reality: it's not that Bitcoin has become stronger, but that the local fiat currency is rapidly losing its value.
Iran's situation is already alarming enough. Inflation exceeds 100%, and bank deposits are shrinking visibly. Prices change daily, while the purchasing power of paper money disappears. At this point, Bitcoin is no longer just an investment tool but a survival tool. When trust in the banking system hits rock bottom and local currency savings become a synonym for negative assets, ordinary people have no choice—they need an asset unaffected by central bank policies, that cannot be frozen or devalued, to protect themselves.
This phenomenon tells an ancient truth to the entire crypto market. Once the fiat system loses credibility, people instinctively seek alternatives. Due to its scarcity and decentralized nature, Bitcoin naturally becomes the "Noah's Ark" in this crisis. Its rise isn't driven by technological breakthroughs or a bull market, but by its role as a hedge against systemic risk.
Iran's lesson is worth global reflection. When central banks abuse monetary policies and debt continues to swell, similar stories may unfold in more regions. The value of Bitcoin as a safe-haven asset has moved from theory into reality.
Is there a safeguard in your asset allocation for such systemic risks?