According to recent reports, a growing number of Egyptians are turning to Bitcoin due to the economic crisis in the country and increasing unemployment. There is a huge spike in the Egyptian Bitcoin community in regard to the number of members that are showing interest in Bitcoin mining and trading. The economic crisis that was brought about by the coronavirus pandemic and the resulting unemployment has forced many Egyptians to make a move towards Bitcoin. Muhammad Abd el-Baseer is a bitcoin trading and mining expert and is also a leading member of the Bitcoin Egypt Community.
This is one of the professional online communities in Egypt that have been formed for people interested in cryptocurrency. Speaking to a news outlet, Muhammad Abd el-Baseer said that the number of community members was increasing, indicating that Bitcoin trading and mining is experiencing a high demand in Egypt. He noted that more than 16,000 Egyptians had joined the community and this number was expected to grow because these new members were going to spread the word to their family and friends. He said that since March, curfews, reduced working hours and online work-from-home models had been imposed in the country as a precaution against the outbreak of the global COVID-19 virus.
According to him, every single one of these measures had encouraged thousands of Egyptians to use their spare time for investing in unusual online businesses, such as trading and mining of cryptocurrencies. Bitcoin, being the leading and pioneer cryptocurrency, had received most of the attention. Another Bitcoin miner, who is also a member of Bitcoin Egypt and numerous other communities for crypto and Bitcoin said that he had switched to this industry after losing his job. He had worked for a contracting company that had downsized after the outbreak of the coronavirus.
To launch his Bitcoin mining business, he had chosen to invest his savings. Nearly half a million Egyptians have been unemployed in the country. The unemployment rate in the first quarter was7.7%, but had risen to 9.6% in the second. According to Chainalysis, the blockchain analytics firm, Egypt holds the 64th position out of the total 154 countries that are on its global cryptocurrency adoption index. Ukraine is on top of the list, and others include Russia, Venezuela, and China. The report further highlighted that most of the trading in Egypt takes place on exchanges like Coinbase, OKEx, Bitfinex, Huobi, Binance, BitMEX, and FTX.
Peer-to-peer (P2P) platforms are used for trading only small quantities of BTC in Egypt. For instance, in the week ending on September 26th, only 10 BTC were traded on Localbitcoins, but their trading volume is also growing steadily. According to experts, Bitcoin mining and trading is attracting thousands of Egyptians because launching such businesses doesn’t require a lot of startup capital and people are watching their savings decline due to the recession. Therefore, Egyptians are choosing to invest their money in Bitcoin, even if it is in a small amount. They have begun mining Satoshi, which is 100 millionth of a Bitcoin, and are able to make daily profits.