Bitcoin is booming in Egypt and becoming a safe haven against currency devaluation!

Currently, the price of bitcoin (BTC) in the market is around $67,180. In Egypt, that same bitcoin has increased by one million Egyptian pounds. The valuation of the leading cryptocurrency in the land of the pharaohs has recently exploded as the local currency has undergone a substantial devaluation amid a difficult economic context.

Bitcoin soars, driven by a devaluation of the Egyptian pound

According to recent information, the valuation of bitcoin has recently seen a sharp increase in Egypt. The price of the leading cryptocurrency in this country has increased by 1.3 million Egyptian pounds.

It is, to say the least, a spectacular rise. This comes in a context where the country’s national currency has experienced a significant depreciation. A loss in value exceeding 34%, just within the last two days.

In other words, the value of bitcoin has significantly increased in relation to the Egyptian pound. This means that Egyptian holders of the leading cryptocurrency have seen the value of their bitcoins explode.

What is happening with bitcoin in the current Egyptian monetary context demonstrates one thing. Namely, that bitcoin indeed serves as a shield against financial risks such as currency depreciation and its resulting consequences. Among these are the loss of purchasing power and rampant inflation.

NEW: The price of #Bitcoin in Egypt surges by 1.3 million Egyptian pounds as the country's currency has depreciated by over 34% in the past 48 hours pic.twitter.com/YWWTM2KrFM

— Bitcoin News (@BitcoinNewsCom) March 6, 2024

The advantage of holding bitcoin

Hunter Horsley, CEO of Bitwise, has commented on the economic situation in Egypt and the role that the leading cryptocurrency can play. He maintains that holding bitcoin is financially advantageous, especially in times of crisis. This explains its growing appeal as a store of value.

Thus, in the context of the economic upheavals Egypt is experiencing, the CEO of Bitwise emphasizes the role of bitcoin as a financial hedging instrument. A role that may further intensify considering that Egyptians have not yet emerged from hardship.

Recently, their country secured an $8 billion loan from the International Monetary Fund (IMF). However, this does not guarantee an immediate improvement in Egypt’s economic situation.

The State is actively working to stabilize its economy while trying to attract foreign investments to avoid further depreciation of its currency. In the meantime, bitcoin seems to position itself as the ideal bulwark against the crisis the Egyptians are facing. It’s a pity not everyone can be exposed to it under the current circumstances…