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How has bitcoin affected oil trading in Iran?
Bitcoin had a significant impact on oil trading in Iran. Iranian business people could avoid the restrictions enforced by the US thanks to electronic cryptocurrency. If you are interested in bitcoin trading, visit bitcoin-circuit.de to acquire an utter guide to crypto trading.
The use of bitcoin allowed Iranian traders to find new ways to trade oil. This, in turn, helped to increase the price of oil. As a result, bitcoin became very popular in Iran, and the country’s economy began to improve. Bitcoin became very popular in Iran, and oil prices increased significantly.
5 Ways how bitcoin affected oil trading in Iran
1. Bitcoin has aided Iran’s transition away from the US currency as a medium of exchange for oil. In the past, Iran used to trade its oil in dollars, but since the sanctions were put in place, it has been using other currencies, such as the euro and yuan. As a result, the US has found it impossible to manage Iran’s oil industry.
2. The use of Bitcoin has allowed Iran to circumvent the sanctions that were put in place by the US. This has helped Iran to continue trading oil, despite the sanctions.
3. Iran has found it more straightforward to be compensated for its petroleum thanks to Bitcoin. In the past, Iran would have to wait for payment from buyers in other countries, but with Bitcoin, it can be paid immediately.
4. The use of Bitcoin has made it easier for Iran to trade oil with other countries. In the past, Iran had to use intermediaries to change oil with other countries, but with Bitcoin, it can deal directly with other countries.
5. The use of Bitcoin has made it easier for Iran to sell its oil. In the past, Iran had to find buyers for its oil, but with Bitcoin, it can sell its oil to anyone who wants to buy it.
6 Negatives of bitcoin that affected oil trading in Iran
1. The high price of bitcoin:
The high bitcoin price is the first and foremost reason Iranian traders have stopped using this cryptocurrency in oil trading.
A single bitcoin is currently worth more than $8,000, which is much higher than the value of other global currencies. This makes it difficult for Iranian traders to exchange their bitcoin for local currency, which affects their ability to trade oil.
2. The lack of regulation of bitcoin:
No authority or banking system regulates Bitcoin. This means that no control oversees its operations or sets rules for its use.
This lack of regulation has led to several scams and frauds involving bitcoin, which have hurt the reputation of this cryptocurrency. In addition, this makes it difficult for traders to trust bitcoin, which affects their ability to trade oil.
3. The hacking of bitcoin exchanges:
Bitcoin exchanges are online platforms where traders can buy and sell bitcoins. Unfortunately, these exchanges have been targets of numerous hacking attacks, which have resulted in the theft of millions of dollars worth of bitcoins.
This has made traders reluctant to use bitcoin exchanges, which affects their ability to trade oil.
4. The high transaction fees for bitcoin:
Bitcoin transactions are subject to very high fees, as much as $30 per transaction. This makes it expensive for traders to use bitcoin to trade oil, affecting their ability.
5. The lack of support for bitcoin in Iran:
There is no official support for bitcoin in Iran. This makes it difficult for Iranian traders to use bitcoin for oil trading, affecting their ability.
6. The uncertain legal status of bitcoin in Iran:
Bitcoin is not officially recognized as a legal currency in Iran. This lack of legal clarity has led to several disputes over the legality of bitcoin, which has made traders reluctant to use it, which affects their ability to trade oil.