Many Egyptians have turned to Bitcoin while the country’s economy is struggling to return to normal after the devastation of the pandemic
Mining and bitcoin trading have become popular in North African countries, despite the volatility and fluctuations associated with the asset. Due to rising levels of unemployment, most citizens turned to cryptocurrency to increase their income.
AL Monitor, a Middle East news site, reported strong interest in cryptocurrencies in the region. The young population is the one that most contributes to this significant increase. Cryptocurrency expert Muhammad Abd el-Baseer explained that the boom in mining and Bitcoin trading in the region is likely due to the shift from work (working in the office to working at home).
The young Egyptian population decided to invest their energy and time in online opportunities during the pandemic period.
“The growing number of Bitcoin miners and traders is a global phenomenon that has been one of the multiple factors behind the increase in demand for bitcoin and, by extension, an increase in the price of the currency itself“, he said.
“This allowed anyone who obtained bitcoin last year, or in the first months of this year, to obtain it at lower prices than today, earning unprecedented profits. Likewise, many Egyptians are watching these profit levels through their investments in cryptocurrencies.“
The drop in Bitcoin mining rewards earlier in the year, and the current rise in Bitcoin prices, have not prevented Egyptians from making a profit.
Economist Wael al-Nahhas noted: “Many young Egyptians began to invest in small amounts, despite the increase in the value of bitcoin. They started mining Satoshi and daily make profits of 4% and 5% with the difference between purchase rates during the period of falling demand and sales rates at the time of peak demand, as well as some quarterly or annual profits from of unexpected increases in Bitcoin rates.“
It is possible that the cryptocurrency industry will grow, due to casual investors joining during this pandemic period, as more and more economies are suffering the consequences of COVID-19.