Bitcoin Hits $24,000 In Iran

[jseverson]

For those claiming arbitrage potential and errors with decimal places, let me dispel that with a scenario:

Let's say you own 1 Bitcoin, and you sold it in Iran so you could earn from arbitrage. Localbitcoins says the rate per Bitcoin is currently 874,755,539.52 IRR, so let's say you ended up with 875m IRR.

Official exchanges say that you can buy $1 for 41,970.80 IRR. That would net you a whopping ~$21k! You've more than tripled your money! Mission accomplished, right?

Well no. Official exchanges are unlikely to sell you any USD because of economic and political reasons. So you're now stuck with a rapidly devaluing IRR.

If you really want to convert IRR to USD, you have to use unofficial exchanges, which offer a $1 for 140k IRR rate. If we use that instead, you're only going to end up with ~$6k, which is just about what Bitcoin is normally worth. The whole process will be pointless.

I hope people read this lol.

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[audaciousbeing]

I wonder if there is a way to take advantage of this fact. For example, the first thing that comes to mind is arbitrage trading. If you know someone in Iran and if you can move money across the border, probably you can. The other question is if this is just a temporary spike.

This would be either temporary, either some smart Iranians will do that arbitrage until the price evens - more or less.
Interesting is the timing. Unless this is old news, it's surprising that Bitcoin spikes in Iran while it falls badly in the rest of the world (although this should be temporary too, I hope).


Edit: I've read the story and the comments and it looks like the 24k price is incorrect. Any proper news agency would apologize and correct that kind of article...

First thing I do when I see topics of thread with controversial subject like this coming at this time when the whole market is still trying to recover from the crash of over $1,000 that has happened in the past few days (above $7,000+ to now $6,000+). and now its just giving some unimaginably hope. Unfortunately there is no regulation in the crypto media because I am sure the article itself is borne out of shady and lazy journalism of a blogger who sits behind the computer to dish out content with the sole purpose of attracting traffic. That is the motive and nothing else.

For those claiming arbitrage potential and errors with decimal places, let me dispel that with a scenario:

Let's say you own 1 Bitcoin, and you sold it in Iran so you could earn from arbitrage. Localbitcoins says the rate per Bitcoin is currently 874,755,539.52 IRR, so let's say you ended up with 875m IRR.

Official exchanges say that you can buy $1 for 41,970.80 IRR. That would net you a whopping ~$21k! You've more than tripled your money! Mission accomplished, right?

Well no. Official exchanges are unlikely to sell you any USD because of economic and political reasons. So you're now stuck with a rapidly devaluing IRR.

If you really want to convert IRR to USD, you have to use unofficial exchanges, which offer a $1 for 140k IRR rate. If we use that instead, you're only going to end up with ~$6k, which is just about what Bitcoin is normally worth. The whole process will be pointless.

I hope people read this lol.

You have done a good analysis here which means the $24,000 claim is really a form of deceits and the greedy ones are actually going round looking for ways for them to sell their coins over there without taking into consideration on how it would be converted to bitcoin and for them to buy the same bitcoin over there, you will be paying above the amount you sold it for.

[stompix]

-snip-

What the hell lol that was so confusing. So they basically have a black market for USD like Venezuela does? Wouldn't this scenario offer a massive profit opportunity for Iranians? Or it at least does on first glance. It'll only work if the official exchanges let you buy USD, which I doubt.

Of course, they do...
Every  3rd world country that starts buying bitcoins suddenly has a black market with pretty steep prices...
It's the norm nowadays

For those claiming arbitrage potential and errors with decimal places, let me dispel that with a scenario:

Let's say you own 1 Bitcoin, and you sold it in Iran so you could earn from arbitrage. Localbitcoins says the rate per Bitcoin is currently 874,755,539.52 IRR, so let's say you ended up with 875m IRR.

Official exchanges say that you can buy $1 for 41,970.80 IRR. That would net you a whopping ~$21k! You've more than tripled your money! Mission accomplished, right?

Well no. Official exchanges are unlikely to sell you any USD because of economic and political reasons. So you're now stuck with a rapidly devaluing IRR.

If you really want to convert IRR to USD, you have to use unofficial exchanges, which offer a $1 for 140k IRR rate. If we use that instead, you're only going to end up with ~$6k, which is just about what Bitcoin is normally worth. The whole process will be pointless.

I hope people read this lol.

Yeah, I hope that too

Nice explanation, but crunching the numbers it seems that if we take the highest rates on the black market for the rial: usd, the price of bitcoin is actually right now a bit lower than the rest of the world!

Journalism is dead! Clearly!

Unfortunately there is no regulation in the crypto media because I am sure the article itself is borne out of shady and lazy journalism of a blogger who sits behind the computer to dish out content with the sole purpose of attracting traffic. That is the motive and nothing else.

Clicks are money. That's all it matters. The more you blow something out of proportion the more clicks and satoshi you make.
Remember the whole Samsung fiasco?

[babysweetTiger0401]

Reading the article, I felt I was outdated in the news like I didn't know that the value of bitcoin can differ to other countries, how can it be possibly? It's totally absurd to think.

I found this link in the comments on article, though I'm not sure of its authenticity, the link is all about their local bitcoin exchange and the numbers are really overwhelming.

https://localbitcoins.com/country/IR

Even my neurons can't absorb this news.

Its too high because it depends on the value of their Fiat currency. But if I am going to convert it into my country currency its almost the same at

the present value of Bitcoin. Or it could be an fake only but I'm not about it.

[Mhd-Bobbi]

Bitcoin hits $24,000 in Iran after the Iranian Government okays mining. This will be great news for the citizens as a way of keeping the economy alive and avoiding the sanction from the USA. It is also boost bitcoin confidence. Link here
https://news.bitcoin.com/bitcoin-hits-24000-in-iran-after-government-okays-mining/

I think it only uses articles, only makes opinions, if it really happens in Iran, what about other countries?
Of course everything must go together if it reaches $ 24,000, but the reality is that it hasn't gone up until now.

[Wittycoin]

How could a $24,000 bitcoin happened in Iran without any good movement of bitcoin in the crypto market? I think the news is not legit. If so, I hope the the jump of bitcoin in Iran could affect this bearish market.

[Ucy]

https://steemit.com/bitcoin/@hassan679/bitcoin-hits-usd35-000-in-iran-after-government-accepts-crypto-mining-as-a-legitimate-industry

On a steemit post (link above) it is stated  that price went as high as $35,000 in the country  before settling at $22,000. Ethereum  traded $900 at thesame time according data from Cryptocompare. The prices rose after Iranian government permitted the mining of Cryptocurrency in the country.
 
Isn't it strange that such a development from Iran did not affect the general price of Bitcoin and altcoin positively. What a market!

[unusualfacts30]

Am I the only guy who immediately though on how to sell BTC on the EXIR exchange?  $24k for one BTC is something that cannot be ignored.

Going back on topic, I think this is good news for crypto in general and for people who are feeling alarming inflation rates. It seems BTC can also protect people's savings.

okay but for how long will it protect their savings. most likely exchange will shut down or transfer will be slow if too many people start using it to arb. I guess it's a good news that bitcoin is getting more acceptance from different countries to the point that they're using it as safe haven. can't be bad for investors and hodlers alike.

[lkjhg]

the news does not affect the price of bitcoin in general, even now the price of bitcoin is decreasing. I guess that's just fake news

[cr7]

For those claiming arbitrage potential and errors with decimal places, let me dispel that with a scenario:

Let's say you own 1 Bitcoin, and you sold it in Iran so you could earn from arbitrage. Localbitcoins says the rate per Bitcoin is currently 874,755,539.52 IRR, so let's say you ended up with 875m IRR.

Official exchanges say that you can buy $1 for 41,970.80 IRR. That would net you a whopping ~$21k! You've more than tripled your money! Mission accomplished, right?

Well no. Official exchanges are unlikely to sell you any USD because of economic and political reasons. So you're now stuck with a rapidly devaluing IRR.

If you really want to convert IRR to USD, you have to use unofficial exchanges, which offer a $1 for 140k IRR rate. If we use that instead, you're only going to end up with ~$6k, which is just about what Bitcoin is normally worth. The whole process will be pointless.

I hope people read this lol.

Thanks for the clarification. Why was it necessary to publish false news with such a populist news portal? How did it slip past the editors?

[Rechargers]

I think it's good for the future, so far bitcoin has helped a lot in financial matters, so I hope Iran will become a developing country in the future, then the economy will start to be stable and the impact will look good.

[Betwrong]

For those claiming arbitrage potential and errors with decimal places, let me dispel that with a scenario:

Let's say you own 1 Bitcoin, and you sold it in Iran so you could earn from arbitrage. Localbitcoins says the rate per Bitcoin is currently 874,755,539.52 IRR, so let's say you ended up with 875m IRR.

Official exchanges say that you can buy $1 for 41,970.80 IRR. That would net you a whopping ~$21k! You've more than tripled your money! Mission accomplished, right?

Well no. Official exchanges are unlikely to sell you any USD because of economic and political reasons. So you're now stuck with a rapidly devaluing IRR.

If you really want to convert IRR to USD, you have to use unofficial exchanges, which offer a $1 for 140k IRR rate. If we use that instead, you're only going to end up with ~$6k, which is just about what Bitcoin is normally worth. The whole process will be pointless.

I hope people read this lol.

Great explanation! I just want to add a few words for those who still have doubts about what really happened.

A situation as described in the quoted post is pretty normal for isolated countries. For example in the former Soviet Union when the official exchange rate was 0.6 Ruble for 1 USD no one would sell you 1 USD for that price. It was possible to buy USD on the black market, but the price was 4 Rubles for 1 USD. In North Korea the official exchange rate is 100 North Korean Won for 1 USD, while a black market rate is over 8,000 NKW for 1 Dollar. And so on.

So, the information in the OP's article and especially its title is nothing more than an astute manipulation of facts.

[carlisle1]

I wonder if there is a way to take advantage of this fact. For example, the first thing that comes to mind is arbitrage trading. If you know someone in Iran and if you can move money across the border, probably you can. The other question is if this is just a temporary spike.

This would be either temporary, either some smart Iranians will do that arbitrage until the price evens - more or less.
Interesting is the timing. Unless this is old news, it's surprising that Bitcoin spikes in Iran while it falls badly in the rest of the world (although this should be temporary too, I hope).


Edit: I've read the story and the comments and it looks like the 24k price is incorrect. Any proper news agency would apologize and correct that kind of article...

I believe that this is only temporary because if not,for sure all of the bitcoin holder will go to iran to have this great fortune lol,imagine the price internationally is multiplied by four in iran ,this is a once in a lifetime experience or chances to be a rich individual ..

Would you mind  to update us if this price growth continues or stopped by now,thanks

[Dimon8]

Venezuela, Turkey, Iran, who is next? Very interesting events occur in countries under US sanctions.- The governments of these countries recognize bitcoin and other crypto.

[liennhung345323]

I think this is just a junk, as the bitcoin price is more than $ 6k4 while in iran will be $ 24k beyond the BTC peak in 2017. I do not believe what you say but I'm hoping at the end of the year BTC will touch $ 10k mark.

[Reid]

They should really make a correction as fast as they could with this article.
Or else, it would give them a problem and might be the reason for the website to be shut down.

For those saying it was an old news. It is not. From this date Sept 6, 2018. It was posted 14 hours ago.

Here is one of the comment from one of the trader in Iran.

1 USD = 14,000 Toman OR 140,000 Rial in the black market. EXIR's tweet is showing the price in Toman so 1 BTC would be roughly the same as the international price and there is no arbitrage.
The problem is that people get their USD-IRR exchange rate from Google which is Iran's official exchange rate that pretty much is meaningless. The exchange rate at the moment between USD and IRR or Toman is what I posted earlier.

There could be a typo error or maybe it is the side of the exchange who made it wrong.
It is said to be $2417 only. So add another number and it could look like 24k USD

[GGurol]

USD is not allowed to free rate trade in Iran, static value by the governor. Its on the blackmarkets, its very hard to convertiing the assets there at the moment.
How they make realize the profit dont know.

[darthmaul]

I wonder if there is a way to take advantage of this fact. For example, the first thing that comes to mind is arbitrage trading. If you know someone in Iran and if you can move money across the border, probably you can. The other question is if this is just a temporary spike.

This doesn’t look like temporary hike in the Iran be sure the prices are like more than 4x the prices of international market and thus making me think how is that even possible. Arbitrage trading may be possible with the sites like localbitcoins becaus they do offer us international trades. The only concerning thing that left us out of this trade is whether Iranian is able to send us money over the borders or not. That will need huge trust and then only it can work.

[nabinkhadka]

In the previous years Bitcoin even hit around 50,000 $ in Venezuela. so it doesn't makes senses  if it hits 24,000 $ in iran now. Countries with US SANCTION MAY BE USE CASE OF CRYPTO CURRENCIES.

[kryptqnick]

Bitcoin hits $24,000 in Iran after the Iranian Government okays mining. This will be great news for the citizens as a way of keeping the economy alive and avoiding the sanction from the USA. It is also boost bitcoin confidence. Link here
https://news.bitcoin.com/bitcoin-hits-24000-in-iran-after-government-okays-mining/

It looks like somebody at the press agency messed up with comma (and maybe currency conversion).   According to the sources in comments there is rather one bitcoin for approximately $2,400 after conversion. However, it also makes an opportunity for arbitrage.

Both versions sound crazy to me. Bitcoin should currently be worth about 270 million Iranian rials. Perhaps the article wanted to say 240,000,000 IRR, but messed up both with a coma and with a currency... I really can't get what is it about and whether it is good or bad news. I also couldn't find any exchanges trading btc for irr on coinmarketcap, so I don't understand how the value can even be calculated. Perhaps, there are some local btc-fiat exchanges, but the relevant language is needed to find that kind of information.
I found the comment under the article that the price on an exchange was actually in a whole different currency called toman and Americans thought it was in IRR and misinterpreted the whole thing. Maybe I didn't get it right, but it was somehow related to that and the fact of official exchange rate from usd to irr being far from real.