Bitcoin enjoys new popularity in Egypt thanks to Corona crisis

In times of crisis, the Egyptians also discovered Bitcoin as a source of income.

While the Corona crisis has also plunged the Egyptian economy into crisis and unemployment is rising in the country, more and more Egyptians see trade and mining of Bitcoin as a possible source of income.

According to Al-Monitor, many Egyptians, especially young people, are now interested in crypto-currencies. Wael al-Nahhas, an economist and financial advisor for several investment companies in Egypt, explains in this context:

“Many young Egyptians have started to invest small amounts of money, even though the price of Bitcoin has gone up. They also mine Satoshi, the smallest unit of Bitcoin, which is a 100 millionth, and make 4-5% profit every day from the difference between the purchase and sales price when demand is particularly high or particularly low. In addition, there are gains from unexpected price jumps of Bitcoin.

Unemployment in Egypt rose from 7.7% in the first quarter of 2020 to 9.6% in the second quarter. This means that almost half a million Egyptians have lost their jobs, according to the latest official figures from the Federal Statistical Office of Egypt.

No wonder that the trade in Bitcoin has become a flourishing business.

However, Muhammad Abd el-Baseer, a Bitcoin miner and member of the Bitcoin Egypt community, sees other factors that have contributed to the growing popularity of the crypto currency. Increased home office, short-time work and curfew hours would all have contributed to giving Egyptians more opportunities to invest in Bitcoin. He estimates that the Bitcoin Egypt community has gained more than 16,000 new members during this time. He assumes that there are many more crypto enthusiasts, as members could in turn pass on their knowledge to friends and family.

Of course, the newly won crypto euphoria also increases the legal uncertainty in the Egyptian community regarding the trade in Bitcoin. However there are to be already first discussions over a new law, which would form a legal framework for crypto currencies.