Currently, the price of bitcoin (BTC) in the market is around $67,180. In Egypt, this same bitcoin increased by one million Egyptian pounds. The valuation of the flagship crypto in the land of the pharaohs has recently exploded as the local currency suffered a substantial devaluation in a difficult economic context.
Bitcoin soars, driven by a devaluation of the Egyptian pound
According to recent reports, the valuation of bitcoin has recently seen a sharp increase in Egypt. The price of the flagship crypto in this country increased by 1.3 million Egyptian pounds.
This is, to say the least, a spectacular increase. The latter occurs in a context where the country’s national currency has suffered a significant depreciation. A loss of value exceeding 34%, just over the last two days.
In other words, the value of bitcoin has increased significantly against the Egyptian pound. This means that Egyptian holders of the flagship crypto have witnessed the explosion in the value of their bitcoins.
What is happening with bitcoin in the current Egyptian monetary context demonstrates one thing. Namely, bitcoin effectively serves as a shield against financial risks such as monetary depreciation and the consequences that result from it. Among these, the loss of purchasing power and galloping inflation.
The advantage of holding bitcoin
Hunter Horsley, the CEO of Bitwise, spoke on Egypt’s economic situation and the role that the flagship crypto can play. He argues that holding bitcoin is financially advantageous, especially in times of crisis. Which explains its growing appeal as a store of value.
Thus, in the context of the economic upheavals that Egypt is experiencing, the CEO of Bitwise highlights the role of bitcoin as a financial hedging instrument. A role which could become even more accentuated knowing that the Egyptians are not yet out of the rut.
Recently, their country obtained an $8 billion loan from the International Monetary Fund (IMF). However, this in no way guarantees an immediate improvement in Egypt’s economic situation.
The state is actively working to stabilize its economy while trying to attract foreign investment to avoid further depreciation of its currency. In the meantime, bitcoin seems to be positioning itself as the ideal bulwark against the crisis facing Egyptians. It’s a shame that not everyone can be exposed to it in the current circumstances…
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