The Use of Bitcoin Increased During the Economic Recession in Egypt

As the COVID-19 pandemic pushed the Egyptian economy into recession. And unemployment deepened, the benefits of trading. And mining Bitcoin are seen by more and more Egyptians as an alternative source of income.

Many Egyptians, particularly young people, are interested in crypto-currencies, according to Al-Monitor. The economist and financial advisor to several investment institutions in Egypt, Wael al-Nahhas, said:

“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.”

During the first quarter of 2020, unemployment in Egypt jumped from 7.7 percent to 9.6 percent during the second quarter, meaning that more than half a million Egyptians have lost their jobs, according to recent figures from the Egyptian Central Agency for Public Mobilization and Statistics.

Bitcoin trading looks very appealing

A Bitcoin miner and member of the Bitcoin Egypt Community, Muhammad Abd el-Baseer. Said other variables also made it easier for individuals to turn to Bitcoin. He said that moving to work from home, reducing working hours. And fresh curfews encouraged many Egyptians in their spare time to invest in Bitcoin. He estimates that more than 16,000 Egyptians have joined the Community of Bitcoin Egypt. He noted, however, that this number might be greater as individuals can teach their friends. And family how to invest in cryptocurrencies.

But while more Egyptians are interested in mining and trading cryptocurrencies. Without proper legislation, many are concerned that individuals could be targeted and accused of fraud. According to experts, a law clarifying what operations can be deemed legal or not around cryptocurrencies could come soon.