Iran's rial has reached a record low against the US dollar. This has led to protests on the streets of the capital and other major cities.
This economic crisis has sparked new discussions about Bitcoin's role as a safe haven. Bitwise CEO Hunter Horsley says that the largest cryptocurrency can act as protection against financial turmoil.
Protests erupt across Iran as the fall of the rial causes unrest
According to the Financial Times, the currency has lost over 40% of its value since Iran's conflict with Israel in June 2025. It is clear that the rial fell from 32,000 per USD in 2015 to over 1.4 million now. This means an almost 44 times greater depreciation over ten years. The rapid decline has exacerbated the crisis in Iran's economy.
The official exchange rate at the beginning of the 1980s was 70 per USD,” wrote Alex Gladstein on X.
Inflation reached 42.2% in December. This is an increase from the same period last year and represents a rise of 1.8% compared to November. It has made it difficult for Iranian families to get by. Food prices rose by 72% in December 2025 compared to the year before. Prices for medicine increased by 50%.
Stores in Tehran's Grand Bazaar closed in protest. The protests spread to Isfahan, Shiraz, and Mashhad. The Associated Press reported that these were the largest street demonstrations since 2022.
The crisis has been worsened by declining oil revenues due to US sanctions, problems in the banking sector, political unrest, and widespread corruption. Amid this, the central bank governor Mohammad Reza Farzin has resigned.
The state has tried to quell discontent with food vouchers and subsidies. But these measures provide only slight relief as inflation continues.
At the same time, traditional safe assets like gold have risen sharply. Gold coins, which have long been a store of value in Iran, cost 1.7 billion rials each on December 28. This is more than double what it was in June.
Bitcoin's role as a value keeper
Gold is a traditional safe asset. But many are now also pointing to Bitcoin as a possible alternative. Bitwise CEO Hunter Horsley recently brought this up.
“Economic mismanagement. It has characterized the past, present, and will characterize the future. Bitcoin is a new way for people to protect themselves,” wrote Horsley on X.
More countries are using Bitcoin as protection against inflation. In the USA, rising inflation and concerns about recession have led many investors to use Bitcoin to protect their purchasing power. Previously, BlackRock CEO Larry Fink has also advocated for Bitcoin.
“If you are afraid that your currency will lose value or due to economic and political turmoil in your country, you may have a global asset class called Bitcoin. It can reduce local fears,” said Fink on X.
More people are using cryptocurrencies to protect against inflation worldwide. According to a report from MEXC in September 2025, 46% of crypto users use digital assets as protection against inflation.
Argentina clearly shows this development. As the peso fell and inflation increased, more Argentinians began to protect their value with Bitcoin and stablecoins.
The collapse of Iran's rial has led to more discussions about Bitcoin as protection against currency devaluation. But the reality is more complex. Bitcoin has a limited supply and political independence. This makes Bitcoin attractive in countries with high inflation, strict regulations, and political turmoil.
In such situations, Bitcoin is increasingly used to preserve value as trust in the local currency decreases. However, it is important to realize that Bitcoin can still vary significantly in value. Additionally, government bans and restrictions can reduce availability and usage.