If you’ve studied a while in the Bitcoin space, you’ll have heard of the tipping point: When a central bank buys bitcoin for its reserves, it will trigger a massive reverse bank run from all others to compensate. Game theory suggests that if central banks can’t kill bitcoin, they have to adopt it.
And sure, it won’t be one of the big central banks to go first. It won’t be US, China, Brussels, London.
But it might be CBI, the Central Bank of Iran.
You see, we’re under a dollar standard. And the US has been abusing that power to strongarm countries to comply with their policies. Iran is a rather large country that has been sanctioned. It cannot use USD to trade, they’re not allowed to hold USD in their treasury, and their own currency is of course suffering as a result.
What are they to do?
Apparently, they’ll adopt Bitcoin. Bitcoin is unregulated, distributed, hard and fair money. It was literally made for this exact scenario.
Maybe it will be the first domino. Who knows? Frankly, as Guy Swann says in the podcast, I too believe it’s too early for this. We’re not ready yet. https://open.spotify.com/episode/6Ha7lZzNQzfas6tdhIo5GZ?si=Gq8ZKHgPQam87xkRkkXlkw
Iran is using Bitcoin mining to circumvent and lessen the effect of the economic sanctions that the U.S. and other countries have applied to the country since 2006, according to a new study by Elliptic, a blockchain analytics and financial crime compliance firm. The country is indirectly using bitcoin mining to export part of its energy reserves, whose exports are being hampered by the said sanctions. https://news.bitcoin.com/iran-is-using-bitcoin-mining-to-circumvent-sanctions-according-to-elliptic/
Study Finds 4.5% Of All Bitcoin Mining Is In Sanctions-Hit Iran https://www.zerohedge.com/crypto/study-finds-45-all-bitcoin-mining-sanctions-hit-iran