People continue to turn to Bitcoin and other cryptocurrencies to boost their profits even amid a pandemic.
As the
COVID-19 pandemic pushed the Egyptian economy into recession and
deepening unemployment, more and more Egyptians see the benefits of
trading and mining Bitcoin as an alternative source of income.
According to Al-Monitor,
many Egyptians, particularly young people, are interested in
cryptocurrencies. Wael al-Nahhas, an economist and financial advisor to
several investment institutions in Egypt, 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.”
Unemployment in Egypt jumped from
7.7% during the first quarter of 2020 to 9.6% during the second quarter,
meaning more than half a million Egyptians have lost their jobs, recent
numbers from the Egyptian Central Agency for Public Mobilization and
Statistics said.
Bitcoin trading then looks very attractive.
Muhammad
Abd el-Baseer, a Bitcoin miner and member of the Bitcoin Egypt
Community, said other factors also made it easier for people to turn
towards Bitcoin. He said the move to work from home, reducing working
hours, and new curfews encouraged many Egyptians to invest in Bitcoin in
their spare time. He estimates more than 16,000 Egyptians have joined
the Bitcoin Egypt Community. However, he noted this number could be
higher as people may teach their friends and family how to invest in
cryptocurrencies.
But while more Egyptians become
interested in mining and trading cryptocurrencies, many are concerned
that people could be targeted and accused of fraud without proper
legislation. A law clarifying what activities can be considered legal or
not around cryptocurrencies could come soon, according to experts.
source link : https://cointelegraph.com/news/bitcoin-use-rise-in-egypt-amid-economic-recession