Iran tensions trigger Bitcoin FRENZY as Trump threats spark US war fears

US President Donald Trump may have threatened “the end of Iran” in a forceful tweet last week – but Iranians are trying to find a way round the sanctions that have crippled their nation over the past decade. With inflation rising exponentially, cryptocurrency is booming in Iran as citizens lose trust in the national currency. Last week’s trading on a single platform – LocalBitcoins – saw 45 billion Iranian Rials, worth $1.35million, exchange wallets.

With a serious threat of armed conflict against the world’s most powerful nation in the near future, experts say that people are looking to store their income in safer places.

Despite the volatility of cryptocurrency, Bitcoin is still seen to be a more reliable asset than the Rial.

Iranian inflation topped 50 percent last month, further spiralling food and fuel prices.

Experts also claim that uncertain geopolitical conditions – such as the horrifying prospect of a looming war – deter any investors from domestic currency and instead sends them towards ‘safe-haven’ assets.

While gold and silver used to be the preferred means, Bitcoin has been the clear choice for Iranians in the modern age.

Last week Bitcoin expert Clem Chambers, CEO of ADVFN and Online Blockchain plc, told Express.co.uk that American pressure on Iran contributed to the cryptocurrency’s price surge.

He said: “If you are an Iranian and you want to protect some of your wealth, or you might have to leave Iran and you are worried. In the old days, you would buy gold – Bitcoin is the new gold.”

Iran’s precarious situation has worsened throughout the week as President Trump ramped up his rhetoric against the country.

Mr Trump wrote on Twitter: “If Iran wants to fight, that will be the official end of Iran. Never threaten the United States again!”

And earlier today, Iranian foreign minister Jawad Zarif responded: “Iranians have stood tall for millennia while aggressors all gone… Try respect – it works!”

Tensions between the two nations have been present since the 1979 Iranian Revolution deposed an American-backed Shah, but they were ignited earlier this month again after President Trump ended sanction exemptions for nations buying Iranian oil.

In response, Iran threatened to resume its uranium enrichment activities, and Tehran has been accused of aiding the attack of four oil tankers off the coast of the United Arab Emirates.

The country’s leadership has so far responded assertively to Mr Trump’s aggression, but insist they do not want to start a conflict.

Mr Zarif told state news agency Irna: “There will not be a war since neither we want a war nor does anyone have the illusion they can confront Iran in the region.”