[2018-09-06] Bitcoin Hits $24,000 In Iran After Government Okays Mining

Taki

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Quote from: jjacob on September 11, 2018, 10:58:52 PM

Quote from: Taki on September 11, 2018, 04:14:53 PM

I'm not an expert. How it was possible that the price inside of concrete country suddenly became different from the global market? I though everywhere the price for crypto should be approximately the same, plus minus couple of dollars.

It usually is the same, if there is capital convertibility. Arbitrageurs step in to take advantage of price differences, and ensure that the price converges, if there is capital convertibility. In cases like Iran, it is not possible to send dollars and buy bitcoins because of sanctions. Hence there can be wide price differences.

Hmm thanks for explanation. So, no matter for the huge price on the exchanger Iranian people will not able to play on it because of dollar is not available there. Am I right?

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Quote from: Taki on September 11, 2018, 04:14:53 PM

I'm not an expert. How it was possible that the price inside of concrete country suddenly became different from the global market? I though everywhere the price for crypto should be approximately the same, plus minus couple of dollars.

It usually is the same, if there is capital convertibility. Arbitrageurs step in to take advantage of price differences, and ensure that the price converges, if there is capital convertibility. In cases like Iran, it is not possible to send dollars and buy bitcoins because of sanctions. Hence there can be wide price differences.

Taki

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I'm not an expert. How it was possible that the price inside of concrete country suddenly became different from the global market? I though everywhere the price for crypto should be approximately the same, plus minus couple of dollars.

reliable

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Quote from: European Central Bank on September 07, 2018, 08:48:21 AM

Quote from: Kakmakr on September 07, 2018, 01:08:55 AM

I tried to do that a while ago with a African country, but I was unsuccessful because I could not find someone trustworthy. Roll Eyes

selling it in country is the easy part. getting the money out of the country to another one is the reason why places like this and others have such huge price premiums. if there was an easy way around it there wouldn't be a premium in the first place.

What you are refereeing is making sense else in the entire world would be selling in that country and buying from other and keep making this profit till the time premium does exists. But I think in coming days it would settle down and be back to normal.

European Central Bank

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Quote from: Kakmakr on September 07, 2018, 01:08:55 AM

I tried to do that a while ago with a African country, but I was unsuccessful because I could not find someone trustworthy. Roll Eyes

selling it in country is the easy part. getting the money out of the country to another one is the reason why places like this and others have such huge price premiums. if there was an easy way around it there wouldn't be a premium in the first place.

darkangel11

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Quote from: Lucius on September 07, 2018, 05:44:35 AM

But it make sense only if you keep that BTC, who will buy for 24k$ and then sell for 6k$? You loose value of your wealth 4 times and this is really stupid move. I think this is just good story for media, price can be 24k$ or 100k$, but this does not mean that someone actually buys BTC in Iran. It is probably very small volume which has no impact on the global price.

You've never been in a dire situation where your government is not allowing you to move your own money abroad and you know that the value of your wealth is going down every month. When you're worried about incoming crisis, bailouts, things like that, or when you know that your banks can go bankrupt and take your money down with them, you'll grab every opportunity to get even 1/4 of these money. For instance, when Gox was going bankrupt people were selling their accounts here on the forum for 1/3 of their value.

Thekool1s

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Quote

Watch out, Islamic countries are not the most welcoming to non believers, especially if those non believers happen to be women. That said, I'm pretty sure many people would convert for the opportunity to sell their BTC for 24k USD right now Grin

Quote

They do not like non believers, like #darkangel11 said, but if you can find someone to trade on your behalf and then send you the money, then you will makes huge profits.

Nah actually 'shites/Shias' are the most tolerant of them all... I am sure I will be quite safe Wink

But you two need to reduce your dosage of Fox news tho Tongue

Quote

Guys, you do realize that the far majority of the Iranians aren't actually buying a whole coin for $24,000 right? It's all fractions of a coin they buy and sell.

Exactly! This is a bull signal at it's very best. Iran isn't middle east where princes will line up to buy 100 BTC bricks. Manipulators are at play here... Nothing more

1Referee

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Guys, you do realize that the far majority of the Iranians aren't actually buying a whole coin for $24,000 right? It's all fractions of a coin they buy and sell.

In the end, the economical activity there is what matters. If people and businesses accept Bitcoin according to the $24,000 valuation, they have their own econimical rules and thus don't lose out on anything. There just aren't enough Bitcoins in the world to allow all people to buy their coins at (currently much lower) western exchange rates.

We're spoiled with how we can buy a lot Bitcoins at the best possible rates, but people need to realize that some very closed countries like Iran don't have that luxury.

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Quote from: Lucius on September 06, 2018, 04:53:26 AM

Quote from: Kakmakr on September 06, 2018, 02:54:20 AM

This means you will not be able to sell those coins on the global markets, until the Bitcoin price reach those levels. The inherent risk in that is huge but it is a fabulous opportunity for arbitrage if you can get coins into those hot markets now.

How awesome would it be to sell your coins at $24 000, when you are buying coins at $6420 outside of Iran. A $15 000 to $17 000 profit on every coin. Shocked

What is going to happen when their markets cools down and people start losing money, when the price drop again. Roll Eyes

I am not sure who will pay 24k$ for 1 BTC in Iran these days, as you say it just not have any sense because they can not sell those BTC on foreign markets and make profit. Maybe they are just too scared of hyperinflation which is very likely because of new USA sanctions and their threats to the rest of the world to stop working with Iran. People maybe see some solution in buying BTC, but also other coins - price on 1 ETH is around 900$ in Iran and probably other coins have a several times higher price.

It would indeed be an exceptional opportunity for trading, but I guess it is not so easy to register on any Iranian exchange or to move fiat from there. I try to search for Iranian exchange EXIR with Google search but without success.

While searching I will advise you stay alert of scams, in my opinion I think those coins are sold to people who are new to crypto... And this is yet another reason why crypto might be tagged scam and lose more potential investors after these guys can't sell on the global market. It will only take days before they figure out they bought less for more value and then the local rate revert to the normal global price.

Lucius

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Quote from: European Central Bank on September 06, 2018, 06:22:11 AM

Quote from: Lucius on September 06, 2018, 04:53:26 AM

I am not sure who will pay 24k$ for 1 BTC in Iran these days.

another iranian?
if you have high inflation and a market that's really hard or impossible to access abroad then whatever price exists there kinda stops meaning anything to anyone outside it.
i wonder how many miners from abroad would migrate there if mining turned out to be cheaper than most of the world.

Of course that another Iranian will buy BTC, but minumum wages in Iran are only above 200$, and this amount is just from this year - last year it was only 180$. Sp ordinary people do not have spare money for invest in BTC, but there are for sure a significant number of rich Iranians who shift their fiat in crypto.

Regarding mining in Iran, even if they make it the cheapest in the world I doubt that miners will come in that country - USA sanction and warning to anyone to stop all business relationships with Iran are not exactly the best invitation for miners.

Quote from: darkangel11 on September 06, 2018, 03:31:56 PM

Quote from: Lucius on September 06, 2018, 04:53:26 AM

I am not sure who will pay 24k$ for 1 BTC in Iran these days, as you say it just not have any sense because they can not sell those BTC on foreign markets and make profit.

Someone who really wanted to dump their fiat money. Why would you pay times the market price? If you're looking for a quick way to move all your wealth from one country to another and are afraid of it being seized/taxed locally, it may look like a fair price.
Why wouldn't they buy outside the country? One reason might be that procuring foreign currency is difficult. Maybe they are having some issues with their banking system. If you could exchange to USD without any problems and buy on Binance or somewhere else, they wouldn't be doing it locally.

But it make sense only if you keep that BTC, who will buy for 24k$ and then sell for 6k$? You loose value of your wealth 4 times and this is really stupid move. I think this is just good story for media, price can be 24k$ or 100k$, but this does not mean that someone actually buys BTC in Iran. It is probably very small volume which has no impact on the global price.

BitHodler

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Quote from: Kakmakr on September 07, 2018, 01:08:55 AM

I tried to do that a while ago with a African country, but I was unsuccessful because I could not find someone trustworthy. Roll Eyes

I can't even find trustworthy people in my own home town to buy or sell crypto currency, so going to a foreign country makes things 100 times worse. We have to accept that we're walking targets for ill minded people.

There have been a couple of incidents where person to person transactions went horribly wrong, and as crypto gains more momentum, we'll be seeing these incidents happen more frequently unfortunately.

Walking around with large sums of value isn't smart. Even drug dealers who usually have lots of cash on them have taken precautions, and that's just an initial signal for what has to comel now crypto is the new kid on the block.

Quote from: o0o0 on September 07, 2018, 04:01:18 AM

dont call it bitcoin core. core is a software implementation. its bitcoin the main chain. affixing core to it is just roger vers marketting strategy.

we shouldn’t confirm vers complex by adopting his naming scheme. the main chain is bitcoin. not bitcoin core

As long as people keep posting articles using bitcoin dot com as source we'll keep seeing core come back. There has been some discussion about not clicking on bitcoin dot com links anymore, so let's hold on to that.

o0o0

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dont call it bitcoin core. core is a software implementation. its bitcoin the main chain. affixing core to it is just roger vers marketting strategy.

we shouldn’t confirm vers complex by adopting his naming scheme. the main chain is bitcoin. not bitcoin core

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Quote from: Thekool1s on September 06, 2018, 10:28:54 AM

Quote from: European Central Bank on September 06, 2018, 06:22:11 AM

Quote from: Lucius on September 06, 2018, 04:53:26 AM

I am not sure who will pay 24k$ for 1 BTC in Iran these days.

another iranian?

if you have high inflation and a market that's really hard or impossible to access abroad then whatever price exists there kinda stops meaning anything to anyone outside it.

i wonder how many miners from abroad would migrate there if mining turned out to be cheaper than most of the world.

Lol, I am packing my stuff and moving to Iran. They have got some really cheap electricity over there... 0.017 cents per KWH! Shocked

Looks like Iran will need some freedom soon... Wink

I think it might be a better option to just visit the country and to find someone trustworthy to sell the coins for you. They do not like non believers, like #darkangel11 said, but if you can find someone to trade on your behalf and then send you the money, then you will makes huge profits.

I tried to do that a while ago with a African country, but I was unsuccessful because I could not find someone trustworthy. Roll Eyes

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Quote from: moriskarlov on September 06, 2018, 01:46:45 AM

The world’s most expensive bitcoin core (BTC) price is in Iran. A combination of high foreign currency demand, economic sanctions and an improved regulatory environment – with some speculation – have sent the price of the leading digital currency skywards. How high can it go?

Falling Rial, New Policy Spur Iran Bitcoin Bull Market

The price of BTC in Iran rose sharply on Wednesday after the government of President Hassan Rouhani approved plans to mainstream bitcoin mining – and as the local currency nosedived.

BTC hit a world record $24,000 on the Iranian exchange EXIR, eclipsing its previous high of $20,000, as investors piled into the digital currency in search of a safe haven against the falling rial.

EXIR tweeted that “bitcoin bull markets already started in Iran as rial price goes down against USD.” The rial is trading at around 138,000 against the US dollar on the streets of Tehran, according to a Reuters report, about 230 percent above the official rate of around 42,000.

See more - https://news.bitcoin.com/bitcoin-hits-24000-in-iran-after-government-okays-mining/

I'd say that most of this is still caused by the fact that there is a huge demand for foreign currency, and the local currency itself is quite illiquid.

I'm not familiar with the currency of Iran, but I'm definitely assuming that there are some sort of capital control involved. Otherwise, the prices would not be so artificially high.

Essentially, what this price is suggesting to us is that Iranians are now using bitcoin as a tool to get their wealth out of the country's fiat currency, or even just buying bitcoin itself to store their wealth most likely because of their dwindling trust in the government's fiat. Would be interesting to see how many real adopters there are, though.

darkangel11

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Quote from: Thekool1s on September 06, 2018, 10:28:54 AM

Lol, I am packing my stuff and moving to Iran. They have got some really cheap electricity over there... 0.017 cents per KWH! Shocked

Looks like Iran will need some freedom soon... Wink

Watch out, Islamic countries are not the most welcoming to non believers, especially if those non believers happen to be women. That said, I'm pretty sure many people would convert for the opportunity to sell their BTC for 24k USD right now Grin

Quote from: Slow death on September 06, 2018, 04:11:32 PM

Quote from: ?? on ??

now is $2600

I see $22648,04, Did not you mean $26000?

It's actually 21k on localbitcoins at the moment.
https://localbitcoins.com/country/IR

Slow death

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Quote from: Kakmakr on September 06, 2018, 02:54:20 AM

What is going to happen when their markets cools down and people start losing money, when the price drop again. Roll Eyes

simple, they will complain to the government and the government and the central bank will speak ill of bitcoin, they will probably say: "we warned that these assets are very dangerous, because they are very volatile, but people do not want to hear." and of course many people will believe those words.

Quote from: ?? on ??

now is $2600

I see $22648,04, Did not you mean $26000?

Quote from: Thekool1s on September 06, 2018, 10:28:54 AM

Quote from: European Central Bank on September 06, 2018, 06:22:11 AM

Quote from: Lucius on September 06, 2018, 04:53:26 AM

I am not sure who will pay 24k$ for 1 BTC in Iran these days.

another iranian?

if you have high inflation and a market that's really hard or impossible to access abroad then whatever price exists there kinda stops meaning anything to anyone outside it.

i wonder how many miners from abroad would migrate there if mining turned out to be cheaper than most of the world.

Lol, I am packing my stuff and moving to Iran. They have got some really cheap electricity over there... 0.017 cents per KWH! Shocked

Looks like Iran will need some freedom soon... Wink

In my country electricity is very expensive

darkangel11

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Don't let others control your BTC -> self custody

Quote from: Lucius on September 06, 2018, 04:53:26 AM

I am not sure who will pay 24k$ for 1 BTC in Iran these days, as you say it just not have any sense because they can not sell those BTC on foreign markets and make profit.

Someone who really wanted to dump their fiat money. Why would you pay times the market price? If you're looking for a quick way to move all your wealth from one country to another and are afraid of it being seized/taxed locally, it may look like a fair price.
Why wouldn't they buy outside the country? One reason might be that procuring foreign currency is difficult. Maybe they are having some issues with their banking system. If you could exchange to USD without any problems and buy on Binance or somewhere else, they wouldn't be doing it locally.

Thekool1s

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Quote from: European Central Bank on September 06, 2018, 06:22:11 AM

Quote from: Lucius on September 06, 2018, 04:53:26 AM

I am not sure who will pay 24k$ for 1 BTC in Iran these days.

another iranian?

if you have high inflation and a market that's really hard or impossible to access abroad then whatever price exists there kinda stops meaning anything to anyone outside it.

i wonder how many miners from abroad would migrate there if mining turned out to be cheaper than most of the world.

Lol, I am packing my stuff and moving to Iran. They have got some really cheap electricity over there... 0.017 cents per KWH! Shocked

Looks like Iran will need some freedom soon... Wink

European Central Bank

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Quote from: Lucius on September 06, 2018, 04:53:26 AM

I am not sure who will pay 24k$ for 1 BTC in Iran these days.

another iranian?

if you have high inflation and a market that's really hard or impossible to access abroad then whatever price exists there kinda stops meaning anything to anyone outside it.

i wonder how many miners from abroad would migrate there if mining turned out to be cheaper than most of the world.

Lucius

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Quote from: Kakmakr on September 06, 2018, 02:54:20 AM

This means you will not be able to sell those coins on the global markets, until the Bitcoin price reach those levels. The inherent risk in that is huge but it is a fabulous opportunity for arbitrage if you can get coins into those hot markets now.

How awesome would it be to sell your coins at $24 000, when you are buying coins at $6420 outside of Iran. A $15 000 to $17 000 profit on every coin. Shocked

What is going to happen when their markets cools down and people start losing money, when the price drop again. Roll Eyes

I am not sure who will pay 24k$ for 1 BTC in Iran these days, as you say it just not have any sense because they can not sell those BTC on foreign markets and make profit. Maybe they are just too scared of hyperinflation which is very likely because of new USA sanctions and their threats to the rest of the world to stop working with Iran. People maybe see some solution in buying BTC, but also other coins - price on 1 ETH is around 900$ in Iran and probably other coins have a several times higher price.

It would indeed be an exceptional opportunity for trading, but I guess it is not so easy to register on any Iranian exchange or to move fiat from there. I try to search for Iranian exchange EXIR with Google search but without success.

Topic: [2018-09-06] Bitcoin Hits $24,000 In Iran After Government Okays Mining (Read 323 times)