Bitcoin providing relief to Egyptians suffering job losses

October 5, 2020
By Sam Grant

Many Egyptians have turned to Bitcoin as the country’s economy struggles to get back on track after the ravages of the pandemic

Mining and trading Bitcoin has grown popular in the North African nation despite the volatility and fluctuation associated with the asset. Due to the rising levels of unemployment, most citizens have resorted to the crypto to pad their income.

AL Monitor, a news site from the Middle East, reported a massive interest in crypto from the region. The youth population has the most contribution to this significant upsurge. Crypto expert Muhammad Abd el-Baseer explained that the swell in Bitcoin mining and trading in the region is probably due to the switch from office-based work to remote work.

The young Egyptian population has opted to invest their energy and time into online opportunities during the pandemic period.

“The increasing number of Bitcoin miners and traders is a global phenomenon that has been one of the multiple factors behind an increase in demand for bitcoins, and by extension the rise in the price of the currency itself,” he said.

“This allowed those who obtained it during the past year or the first months of this year at prices lower than the current one to reap unprecedented profits, and many Egyptians are eyeing these levels of profits through their investment in cryptocurrencies.”

The shrinking rewards from Bitcoin mining at the start of the year and the current increase of Bitcoin prices haven’t hindered Egyptians from gaining returns.

Economist Wael al-Nahhas observed, “Many young Egyptians started investing in small amounts despite the increase in the value of bitcoin. They started mining Satoshi, 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.”

It is possible that the crypto industry will soar as a result of casual investors joining in during this pandemic period as more economies suffer the blows of COVID-19.