During the economic turmoil brought on by the Taliban’s violent takeover, some Afghans are relying on their bitcoin holdings. Crypto assets won’t help individuals buy anything right away, but they will ensure that their money is safe in the face of economic uncertainty.
In Afghanistan, investing in cryptocurrencies is a relatively new idea, but the country has witnessed the increasing acceptance of digital currency in 2021. In the Chainalysis 2021 Global Crypto Adoption Index, the country was placed 20th out of 154 countries, a significant increase over 2020, when it did not even make the list.
According to the study, Afghanistan rises to the seventh rank after separating the country’s peer-to-peer (P2P) exchange transaction volume.
According to the statistics, more Afghans began investing in cryptocurrencies this year, owing to fears of an economic downturn as the Taliban launched their campaign to retake control of the nation.
According to Google Trends data, web searches for the terms “bitcoin” and “crypto” in Afghanistan surged in July, just weeks before the Taliban took control of Kabul. However, because the tool simply estimates the measure of interest and does not store real data, there is no way to identify the precise number of searches.
While digital coins have risen in the country, there is no means of knowing how many people out of the whole population have invested in cryptocurrencies.
According to CNBC.com, a 22-year-old Afghan with crypto holdings has been keeping a careful eye on his portfolio on Binance, the world’s largest cryptocurrency trade.
Farhan Hotak is one of the few Afghans who will be spared the currency devaluation brought on by the Taliban’s takeover. Others, like Hotak, who have invested in cryptos, will be shielded from the fast devaluation of the currency.
It should be mentioned that once the Taliban gained control of Afghanistan, the afghani, the country’s currency, fell.
According to Hotak, the scope of investing in Bitcoin and other cryptocurrencies in Afghanistan is quite restricted. “I have very, very, very limited resources to do anything. I’m interested in the crypto world, because I have earned a lot, and I see a lot of potential in myself that I can go further,” he stated.
Musa Ramin, a 27-year-old Afghan citizen, put a chunk of his wealth in cryptocurrency just days before the Taliban took control of Kabul.