The Iranian rial has recorded an all-time low against the dollar, leading to protests across the capital and major cities.
This economic crisis has reignited the debate over Bitcoin's potential role as a safe-haven asset. Hunter Horsley, CEO of Bitwise, suggested that the largest cryptocurrency could serve as a safeguard during financial turmoil.
Protests across Iran… concerns over rial collapse
According to the Financial Times, the value of the currency in Iran has fallen by more than 40% following the conflict with Israel in June 2025. In particular, the drop from 32,000 rials per dollar in 2015 to over 1.4 million rials indicates a depreciation of about 44 times over the course of 10 years. Such a rapid decline has further intensified the economic crisis in Iran.
“In the early 1980s, the official exchange rate was 1 dollar for 70 rials.” – Alex Gladstein
By December 2025, the inflation rate reached 42.2%, an increase compared to the same period last year, and a 1.8% rise from November. As a result, Iranian households are facing severe economic pressure. As of December 2025, food prices have risen by 72% compared to the same period last year, and medical supplies have increased by 50%.
Shops in the Grand Bazaar of Tehran closed in protest, and demonstrations spread to Isfahan, Shiraz, and Mashhad. AP reported this as the largest street protests since 2022.
This crisis is further accelerated by a decrease in crude oil imports due to U.S. sanctions, structural issues in the banking sector, political turmoil, and deep-rooted corruption. In the midst of this, the central bank governor, Mohammad Reza Pahlavan, has resigned.
The government has tried to alleviate public discontent with measures such as food vouchers and subsidies. However, these attempts have shown only limited effectiveness amid ongoing inflation.
Meanwhile, the prices of traditional safe-haven assets like gold have skyrocketed. Gold coins, which have long been used as a store of wealth in Iran, reached 1.7 billion rials each on December 28, more than doubling since June.
Bitcoin serves as a store of value
Gold has long established itself as a traditional safe-haven asset, but many experts point out that Bitcoin could also be an alternative. Hunter Horsley, CEO of Bitwise, recently expressed the same opinion in a post.
“Mismanagement in the economy. A story of the past, present, and future. Bitcoin is a new way for people to protect themselves.” – Hunter Horsley, CEO of Bitwise
The movement to adopt Bitcoin as an inflation hedge is rapidly spreading across various economic zones. Due to rising inflation and recession fears in the U.S., many investors are choosing Bitcoin as a tool to preserve purchasing power. Larry Fink, CEO of BlackRock, has also previously advocated for Bitcoin.
“If you are concerned about currency depreciation or political and economic stability, an international asset like Bitcoin can help overcome these local uncertainties.” – Larry Fink, CEO of BlackRock
Looking at global data, there is a clear trend of utilizing cryptocurrencies as a hedge against inflation. According to the MEXC report in September 2025, 46% of all cryptocurrency users cited digital assets as a means to hedge against inflation.
Argentina is a prime example of this trend. As the peso plummeted and inflation accelerated, the people of Argentina have increasingly relied on Bitcoin and stablecoins to preserve value.
The collapse of the Iranian rial has reignited the narrative of Bitcoin as a hedge against currency depreciation, but the actual situation is more complex. Bitcoin becomes a strong alternative in economies where chronic inflation, capital controls, and political instability are exacerbated due to its fixed supply and independence from national monetary policy.
In such an environment, as trust in national currency collapses, Bitcoin is increasingly used as a means of preserving value. However, Bitcoin still exhibits high volatility. Additionally, government bans and various regulations can significantly limit accessibility and usability.