- Robert Kiyosaki, author of “Rich Dad, Poor Dad,” highlights the ongoing capital flight into Bitcoin in Iran.
- The veteran businessman explained that in situations like those in the embattled country, BTC behaves less like a tech stock and more like “digital gold.”
The Iranian rial, Iran’s national currency, continued its collapse amid ongoing social and political unrest in the Middle Eastern nation. While its value hadn’t been entirely zero as what the ongoing media virality has been telling people, the US dollar to Iranian rial conversion went from around 42,000 rials per USD since 2018 to a sharp spike of 6,677,500 rials per USD on Tuesday, before settling at 1,092,500 rials per USD intraday.
The crisis is a clear illustration of fiat currency’s volatility during periods of national unrest. Meanwhile, it reinforces Bitcoin’s (BTC) thesis as a safe haven or hedge against political, social, and economic uncertainties, aligning with its “digital gold” narrative.
Bitcoin Demand Exponentially Rising in Iran
Robert Kiyosaki, author of the best-selling finance book “Rich Dad, Poor Dad,” claimed that Bitcoin is now “going vertical in Iran.” The scenario there best exemplifies what a fiat currency actually looks like and how it inversely correlates with crypto assets like BTC.
The American businessman and author stated that the event is not a “crypto story.” Instead, it’s a “money story.”
Kiyosaki highlighted that Bitcoin is “exploding” in Iran, not because of hype or speculative investing. It’s due to necessity.
The Bitcoin Dynamics in Iran
Kiyosaki admitted that Bitcoin is also inherently volatile in the short term. However, the events unfolding in the embattled nation are forcing Iranians to abandon the money that is collapsing faster.
Additionally, the veteran businessman emphasized that Bitcoin’s flexible dynamics make it behave less like a tech asset and more like digital gold in situations like those in Iran. Likewise, he pointed out that people tend to look for alternatives that don’t require permission when governments lose control of their currencies.
Kiyosaki warned that Iran demonstrates an inevitability: many governments will eventually collapse under their own weight. He explained that many countries are already on that path due to incessant money printing and irresponsible fiscal spending, which results in national debts widening their margins from productivity and erosion in the purchasing power of their money.
Moreover, Kiyosaki reminded that some countries may not see the crisis untangling now as the issues move slower than others, but they are all heading in the same direction.
Iranian Rial Vs Bitcoin
As of Wednesday morning (UTC), the Iranian currency trades at approximately 4 billion rials per Bitcoin based on CoinMarketCap data. But then again, the heightened demand and on-ramping limitations, primarily due to the Central Bank of Iran’s (CBI) restrictions on capital flight to crypto, could drive rial-to-BTC conversions higher in Over-The-Counter (OTC) trades.
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