Recently, there have been reports about Iran's currency crisis, which indeed reflect a harsh reality — in countries where fiat currency faces systemic devaluation, the demand for crypto assets can be extremely high.

Let's look at some data. At the beginning of 2024, 1 USD was exchanged for 450,000 Iranian Rials, with only a 20% gap between official and black market rates. Fast forward to early 2026, the free market quote has already reached 1,450,000 Rials per USD, with the Rial depreciating by as much as 90% in just over a year. This is not just a number game; it’s a collapse in purchasing power happening in everyday life — the money that could buy ten pounds of flour last year now can't even buy one pound.

The severity of the problem far exceeds the surface data. The official inflation rate has soared to 42.5%, with food prices skyrocketing by 72%. The retail price of one kilogram of beef ranges between $15 and $18, while the average monthly income for ordinary workers is around $70. Buying meat once consumes a quarter of the monthly salary. For retired elderly people, it’s even more despairing — they used to be able to live comfortably on their pensions, but now they can't even cover ten days of basic living expenses; civil servants' half-year wages have also been severely eroded.

Such scenarios are not isolated in emerging markets. When fiat currencies spiral into devaluation, the cash held by ordinary people loses value at a visibly rapid rate, and the demand for hedging assets skyrockets. This is precisely why, in some countries and regions experiencing hyperinflation, the adoption rate of Bitcoin and other crypto assets is often much higher than in developed countries. The currency crisis objectively increases the craving for alternative assets.

For crypto investors, this is also a risk warning worth reflecting on. Macroeconomic turmoil can indeed create short-term opportunities, but in the long run, investment decisions should not rely solely on such external shocks. True wisdom lies in understanding systemic risks and maintaining clear judgment across different market cycles.