Economic recession boosts Bitcoin use in Egypt

People continue to turn to Bitcoin and other cryptosystems to increase their profits in the midst of the COVID-19 pandemic.

As the COVID-19 pandemic pushed the Egyptian economy into recession and increased unemployment, more and more Egyptians see the benefits of Bitcoin’s trade and mining as an alternative source of income.

According to Al-Monitor, many Egyptians, particularly the younger ones, are interested in cryptomonies. Wael al-Nahhas, an economist and financial advisor to several investment institutions in Egypt, said:

„Many young Egyptians started to invest in small amounts despite the increase in the value of bitcoin. They began to mine Satoshis, which is 100 millionths of a bitcoin, and every day they make gains of 4 to 5 percent of the difference between purchase rates at the time of declining demand and sale rates at the time of peak demand, plus some quarterly or annual gains from unexpected increases in bitcoin rates.“

Unemployment in Egypt rose from 7.7% during the first quarter of 2020 to 9.6% 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 Mobilization and Statistics.

Bitcoin’s trade then looks very attractive.

Muhammad Abd el-Baseer, a Bitcoin miner and member of the Bitcoin Circuit Egyptian Community, said other factors also made it easier for people to choose Bitcoin. He said the move to work from home, the reduction in working hours and the new curfews encouraged many Egyptians to invest in Bitcoin in their free time. He estimates that more than 16,000 Egyptians joined the Bitcoin Egyptian Community. However, he pointed out that this number could be higher as people could teach their friends and family how to invest in cryptology.

Despite the fact that more and more Egyptians are interested in mining and trading in crypto currencies, many are concerned that they may be targeted and accused of fraud without a relevant law. According to experts, a law could soon be enacted clarifying what activities can be considered legal or illegal around cryptomonies.