The Egyptian economy has been battered by a global pandemic that has seen many lose their jobs and some their lives. In these times of crisis, the younger demographic of the Egyptian population is beginning to appreciate the benefits of using cryptos.
Many young Egyptians see the benefits of trading and mining Bitcoin as an alternative to source of income. The growing interest in crypto-currencies among young Egyptians has caught the attention of economist and financial advisor, Wael al-Nahhas. He weighed in on the issue by saying;
“Many young Egyptians started investing in small amounts despite the increase in the value of the bitcoin. They started mining Satoshi, which is 100 millionth of a bitcoin, and on a daily basis they are making profits of 4% to 5% from the difference between buying rates during the timing of demand decline and selling rates at the time of peak demand, besides some quarterly or yearly profits from unexpected hikes in bitcoin rates.”
Hedge against economic down turn
Many of Egypt’s youth are aware of the economic struggles the current administration is trying to maneuver through. The unemployment rate in the country went up from 7.7% during the first quarter of this year, to 9.6% during the second quarter. These percentages mean that over half a million Egyptians have lost their jobs. In these times of economic peril, Bitcoin trading has become very attractive.
Other factors leading to increased Bitcoin trading
Other than a hedge against economic chaos, the push towards Bitcoin in the North African nation has been fuelled by other factors according to a local BTC trader. Muhammad Abd el-Baseer, a Bitcoin miner and member of the Bitcoin Egypt Community said that prevailing factors had made it easier to trade in BTC.
Restrictions put in place to curb the spread of the disease, has helped BTC trading adoption. Many hours in lockdown has led to many people taking an interest in it.
Reduced working hours
A reduction in working hours occasioned by curfews put in place by the government, availed spare time that saw BTC trading being explored. Mr Abdul El-Basser estimates that more than 16,000 Egyptians have joined the Bitcoin Egypt Community.
As interest in crypto grows in the country, it is expected that regulation will come soon. A high interest unregulated activity is susceptible to criminal activity. To some, regulation can’t come soon enough.
Image courtesy of Pexels