Badly researched or copied news has a big drawback: it is prone to errors. Thus, in the meantime, the rumor has spread that the killing of the Iranian General Ghassem Soleimani and the subsequent uncertainties have caused the Bitcoin price in Iran to rise to 24,000 or even 29,000 dollars. That would shake the market and all related BTC niches like gambling, many BTC sites like already stated that this is fake news!

Iranian inflation drives the Bitcoin price

After the general of the al-Quds Brigades (=the elite unit of the Iranian Revolutionary Guards) was killed in a targeted drone attack by the USA, the uncertainties and the danger of war have increased drastically. The American stock market already closed in the red and many newspapers and politicians spoke of an action resembling a declaration of war. A new Gulf War would be a catastrophe, but could also affect the Bitcoin share price.

In times of uncertainty, the price of gold and Bitcoin often rises because many people are looking for security precisely because of these uncertainties. After Donald Trump has continued to add fuel to the fire, unilaterally terminated the nuclear agreement and imposed ever harsher sanctions on the country, the inflation of the Iranian rial has become extremely advanced. Inflation rates of 35% are now normal, compared to 1.5% in Germany. Read the article “How Iran is seeking a way out of dollar dominance with its own crypto currency”.

USA are hated and an enemy in Iran – Why?

The relations between the USA and Iran have not been good since the 1950s and especially today the USA is still hated by large parts of the population. One of the reasons for this is that the USA already in the 50s pushed through its imperialist power interests with all means.

Thus, the Iranian people independently managed to organise a successful revolution against the brutal Shah regime supported by the USA and Great Britain. Afterwards, the first democratically elected president of Iran, Mohammad Mossadegh, was sworn in. He nationalized the Iranian oil companies, reformed the school system and finally worked for the Iranian people.

But the bloom of Iranian democracy and economy lasted only briefly, because the CIA and MI6 (= American and British secret service) putsched Mossadegh out of office, in order to install the Shah as a puppet in Iran again. The following second revolution unfortunately did not run so democratically – as a result came the Mullah regime, which still controls Iran today.

Bitcoin rate wrongly calculated due to conversion error

Because of rampant inflation, the Iranian Central Bank has long since created an artificial exchange rate between the Iranian rial and the US dollar. So this exchange rate has been at exactly 1 USD = 42,000 IRR for many months. If you calculate the Bitcoin exchange rate with this rate, you actually come to about 24,000 USD. But now comes the big BUT:

Not a single Iranian would pay that price. Because every Iranian knows that 1 USD = 135,000 IRR. So the Bitcoin exchange rate in Iran is only about 7,296 USD, which is even below the current world market price of 7,358 USD.