No one would pay 24000 dollars for an 8000 dollars Bitcoin
Sa.Sadeghi | 2020-01-08

Dear Cointelegraph: No one would pay 24000 dollars for an 8000 dollars Bitcoin

After the assassination of Iranian top military commander, general Soleimani in Baghdad by the United States, the price of Oil and Gold surged immediately. Economists warned about the disruption to global oil supplies and the Market reacted consequently.

The cryptocurrency market was also affected at the time. As soon as the news announced, Bitcoin raised 4 percent, and this was the same for other main cryptocurrencies. That was all about the financial effect of the United States terrorist attack in the Middle East. But the story began when Cointelegraph surprisingly reported on Saturday, Jan 04, that Iranian sellers on peer-to-peer trading Network LocalBitcoins are asking $24000 per Bitcoin as the tension rises between the United States and Iran! Seemingly, that was due to 1 billion Iranian rials per Bitcoin which were asking from the sellers on LocalBitcoins.

One billion rails but not 24 thousand dollars!

The news was surprising even for the Iranian cryptocurrencies community who certainly understood the funny mistake Cointelegraph made. But what was the tiny fact Cointelegraph misunderstood? the news which is then corrected by the website.

Since July 2018 and due to U.S economic sanctions, the Iranian Government pays a subsidy for the import of basic needs with a fix government-based exchange rate of the US dollar. By this fact, each US dollar changes for 42000 rails and this is only for basic needs and public goods. based on the official rial-to-USD exchange rate, each Bitcoin costs $24000. however, the Market rate for the US dollar is around 130000 rails at the time of writing and is available for the public to settle with. Regarding all, you would be agreed that Bitcoin is not a public good or basic need (at the moment maybe!) and for sure would not support by the supporting monetary policy of the Iranian government.

So dear Cointelegraph, bitcoin costs 1 billion rails but no one would pay 24000 dollars for an $ 8,000 Bitcoin!