As the new crown pneumonia pandemic has plunged Egypt’s economy into recession and increased unemployment, more and more Egyptians have seen the benefits of Bitcoin trading and mining as another source of income.
According to Al-Monitor, many Egyptians, especially young people, are interested in cryptocurrency. Wael al-Nahhas, an economist and financial adviser for several investment institutions in Egypt, said:
“Despite the increase in the value of Bitcoin, many young Egyptians only start small investments. They start to mine Bitcoin and change from the buying price at the time of declining demand to the selling price at peak demand. Earn 4% to 5% profit from the difference, and earn quarterly or annual profits in the unexpected increase in the price of Bitcoin.
According to recent data released by the Central Public Mobilization and Statistics Bureau of Egypt, the unemployment rate in Egypt has jumped from 7.7% in the first quarter of 2020 to 9.6% in the second quarter, which means that more than 500,000 Egyptians are unemployed.
Bitcoin transactions look very attractive.
According to Muhammad Abd el-Baseer, a Bitcoin miner and member of the Egyptian Bitcoin community, other factors also make it easier for people to switch to Bitcoin. He said that working from home, reduced working hours, and the new curfew have encouraged many Egyptians to invest in Bitcoin in their spare time. He estimates that more than 16,000 Egyptians have joined the Egyptian Bitcoin community. However, he pointed out that this number may be higher because people may teach their friends and family how to invest in cryptocurrency.
However, although more and more Egyptians are beginning to be interested in the mining and trading of cryptocurrencies, many people worry that if there is no proper law, people may be targeted and accused of fraud. Experts said that a law will be introduced soon to clarify which activities of cryptocurrency are considered legal or illegal.
