Many people only focus on candlestick patterns but ignore a repeatedly validated truth: during extreme economic conditions, the value of crypto assets is truly activated. Iran's currency crisis is such a case that all traders should deeply consider.

The data is in front of us. At the beginning of 2024, the USD to Rial exchange rate was still around 1:45,000, with little difference between official and black market prices. But in just over a year, the real market exchange rate has skyrocketed to 1:1,450,000, with a devaluation of over 90%. To put it another way: the money that could buy ten pounds of flour last year is now barely enough for change. The average monthly income for a regular worker in USD is only $70, and buying one kilogram of beef costs a quarter of that monthly income. Retired elderly relying on pensions can barely sustain themselves for ten days before running out of food. The official inflation rate is 42.5%, but the actual increase in food prices has surged to 72%. This is not just a numbers game; it’s a real collapse of purchasing power.

Some might say this is an isolated case of a small country and has nothing to do with the crypto market. But if you understand Iran’s role in the crypto ecosystem, you’ll realize how dangerous that judgment is. As early as 2018, Iran opened Bitcoin mining licenses. At its peak, over 47 licensed mining farms operated domestically, accounting for 4%-7% of the total Bitcoin network hash rate. Why is Iran so active? It’s driven by despair caused by dollar sanctions—the traditional foreign exchange channels are blocked, making it difficult to import vital supplies like medical equipment and energy resources. Crypto assets have become the only cross-border trade route forcibly opened up, serving as the last lifeline to sustain the economy.

This story tells us that when fiat currency credit collapses and institutional constraints are destroyed, cryptocurrencies are no longer just speculative tools but essential survival tools. Understanding this logic can help you survive longer in this market better than just watching minute-by-minute price movements.