Mass protests took place in Tehran after the Iranian rial reached a record low against the US dollar. Locals blame the Central Bank’s policies, which faced severe criticism and led to the resignation of its governor, Mohammad Reza Farzin. Amid the loss of purchasing power, people are looking for alternative ways to preserve capital, and in this context, Bitwise CEO Hunter Horsley named Bitcoin as a potential tool for safeguarding savings.
Causes of the Protests in Iran
The main cause of the protests is the sharp decline in the rial’s value: the currency has lost more than 40% of its purchasing power since June and trades at about 1.4 million rials per dollar. This devaluation has eroded many families’ savings and intensified dissatisfaction with economic policies. The situation worsened with the resignation of Central Bank Governor Mohammad Reza Farzin, adding uncertainty to the country’s financial management.
Bitcoin’s Role in Protecting Savings
According to Hunter Horsley from Bitwise, Bitcoin is viewed as one way to protect against rapid national currency devaluation: in times of severe depreciation, the digital asset offers an alternative store of value. However, in Iran, access to cryptocurrencies and self-custody rules remain unclear, while mining is under strict government control. The role of BTC in international currency relations is also discussed in other materials; see the article on Bitcoin’s impact on the dollar for additional perspective.
Regulation of Bitcoin Mining in Iran
The Iranian government actively combats unauthorized mining and even encourages reporting neighbors as part of the crackdown on illegal farms. At the same time, cheap electricity theoretically results in low mining costs: estimates put the cost of mining one BTC at around $1,300. However, unclear rules on crypto asset custody and strict mining regulations limit the population’s ability to fully leverage these advantages.
- Government measures against unregistered mining;
- Low operational costs for mining (around $1,300 per BTC as of October estimates);
- Ambiguous self-custody regulations for private individuals.
Economic Challenges in Iran
Beyond currency devaluation, systemic risks have accumulated in the economy: in October, the state-owned Bank Melli was declared bankrupt, jeopardizing the assets of over 42 million Iranians. The Central Bank also warned that eight other banks risk liquidation if reforms are not implemented. Additionally, the Iranian crypto exchange Nobitex suffered a hacker attack resulting in losses of $81 million, exacerbating risks for crypto market users.
Why This Matters
If you mine in Russia, events in Iran do not directly change the technical setup of your farm, but they illustrate the risks people face amid sharp currency devaluation and weak banking asset protection. It’s important to understand that when the banking system and national currency are under pressure, the need for reliable stores of value grows, influencing demand and discussion around cryptocurrencies as a "safe haven." At the same time, strict national restrictions and cyberattack risks show that access to services and operational security remain critical factors.
What to Do?
- Verify and strengthen private key storage: use cold wallets and keep backups in secure locations.
- Assess risks of exchanges and centralized services: major hacks (like the $81 million breach in Iran) highlight the importance of choosing reliable platforms.
- Monitor regulatory signals and news: changes in mining rules or banking systems can indirectly affect BTC liquidity and usability.
- Optimize mining operational costs: regularly review electricity rates and equipment efficiency, especially for smaller farms.
- Diversify value storage approaches: combine crypto self-custody with other security measures and consider local risks.
For a deeper understanding of Bitcoin’s long-term profitability and expert opinions, Bitwise’s material reviews 10-year forecasts and yield estimates — a useful starting point for planning storage and mining strategies. More details at Bitcoin profitability.