The Iranian rial has just hit a record Dip against the US dollar, sparking street protests in the capital and other major cities.
This economic crisis has sparked debate about Bitcoin's potential as a "safe haven." Bitwise CEO Hunter Horsley suggested that the largest cryptocurrency could help people protect themselves against financial uncertainty.
Protests erupted across Iran as the rial's fall in value caused instability.
According to the Financial Times , the Iranian currency has lost more than 40% of its value since Iran's conflict with Israel began in June 2025. Notably, the rial has fallen from 32,000 rials to 1 USD in 2015 to just over 1.4 million rials today, a nearly 44-fold devaluation in 10 years. This rapid decline has further exacerbated the economic crisis in Iran.
"The official exchange rate in the early 1980s was 70 rials to 1 USD," Alex Gladstein said .
Iran's inflation reached 42.2% in December, up from the same period last year and 1.8% higher than in November. This has caused severe hardship for Iranian households. Food prices rose 72% in December 2025 compared to a year earlier, while prices of medical supplies also increased by as much as 50%.
Many shops at Tehran's Grand Bazaar closed in protest, with demonstrations spreading to major cities such as Isfahan, Shiraz, and Mashhad. According to the Associated Press , this is the largest wave of street protests in Iran since 2022.
The crisis was exacerbated by plummeting oil revenues due to US sanctions, compounded by banking problems, political turmoil, and persistent corruption. Amidst this, the Governor of the Central Bank of Iran, Mohammad Reza Farzin, submitted his resignation.
The Iranian government has tried to appease the population with policies such as food stamps and subsidies. However, these measures have not helped much in the face of continuing inflation.
Meanwhile, traditional safe-haven assets like gold have seen a dramatic price increase. Gold bars – a familiar form of wealth storage in Iran – at one point reached 1.7 billion rials per coin on December 28th, more than double the price in June.
The role of Bitcoin as a store of value
Although gold has long been considered a traditional safe haven, many people are also starting to pay attention to Bitcoin as an alternative. Bitwise CEO Hunter Horsley recently Chia this view.
"Poor economic management is a story of the past, present, and future. Bitcoin is a new way for people to protect themselves," Horsley emphasized .
The idea of using Bitcoin as a safe haven is becoming increasingly popular in many economies. In the US, rising inflation and fears of recession have led many investors to choose Bitcoin to protect their purchasing power. Previously, BlackRock CEO Larry Fink recommended using Bitcoin.
"If you fear your currency will depreciate, or are concerned about the economic and political stability of your country, you might consider a global tool like Bitcoin to mitigate those risks," Fink stated .
Global data shows that the use of cryptocurrencies to hedge against inflation is increasing. According to a September 2025 MEXC report , up to 46% of crypto users said that digital assets are a way for them to protect against inflation.
Argentina is a prime example. As the peso plummeted and inflation soared , more and more Argentinians turned to Bitcoin and stablecoins to preserve the value of their assets.
Although the collapse of the rial has led to renewed discussion of "Bitcoin helping to combat currency devaluation," the reality is not quite that simple. The fixed supply, independent of domestic monetary policy, makes Bitcoin more attractive in economies experiencing persistent inflation, strict Capital controls, or political instability.
In such an environment, Bitcoin increasingly plays a Vai as a store of value as confidence in national currencies erodes. However, it should also be noted that Bitcoin remains highly volatile by nature. Furthermore, government bans or restrictions can still make it difficult to access and use.
