Bitwise CEO: The collapse of the Iranian currency has sparked protests, highlighting the necessity of Bitcoin as a tool for value protection

As the Iranian rial's exchange rate against the dollar has fallen to a historic low, large-scale protests have erupted in Tehran recently, with the public attributing the continuous devaluation of the local currency to the central bank's long-term fiscal and monetary policy failures. In response, Bitwise CEO Hunter Horsley stated on the X platform that economic mismanagement has been a constant throughout the past, present, and future, while Bitcoin provides a new way for ordinary people around the world to protect their wealth amid significant devaluation of fiat currencies.

Reports indicate that since the two-week conflict with Israel in June of this year, the purchasing power of the Iranian rial has shrunk by over 40%, with the current official exchange rate at approximately 1.4 million rials to 1 dollar. Alex Gladstein, Chief Strategy Officer of the Bitcoin Human Rights Foundation, also mentioned that in the early 1980s, the official exchange rate in Iran was only 70 rials to 1 dollar, highlighting the significant depreciation. Meanwhile, the governor of the Iranian central bank has resigned under protest pressure, further exacerbating market uncertainty.

Additionally, although Iran allows cryptocurrency trading, the regulations on custody and mining remain relatively strict. VanEck's research director Matthew Sigel pointed out that Iran has recently cracked down on unregistered Bitcoin mining activities and even encouraged citizens to report their neighbors. Analysts believe that against the backdrop of sanctions, pressure on the banking system, and continuous devaluation of the local currency, discussions around Bitcoin as a decentralized store of value are on the rise.