Interest in cryptocurrencies increases in Azerbaijan

With the increase in the cost of Bitcoin, interest in cryptocurrencies has grown in Azerbaijan, a cryptocurrency expert Omar Gurbanali said, Trend reports.

The expert said that judging by the correspondence and activity in various groups, there are about 5,000 cryptocurrency users in Azerbaijan. There is interest in the exchange rate of Bitcoin, the general process of its mining, and Internet search engines are used for this purpose, he noted. However, there is no big consumer mass of cryptocurrencies in Azerbaijan, he added.

In his words, fluctuations in the exchange rate of cryptocurrency should be important for those who are interested in this subject.

“That is because the market is controlled by artificial manipulations in this area,” he noted. “But when cryptocurrency was created, the goals were different. It was assumed that it would facilitate the buying and selling process. However, it turned out the opposite. It came to the point that cryptocurrencies started to be treated as an investment instrument. Cryptocurrency turned into a commodity. The price increase registered last year was connected with the flow of news. This trend lasted til December.”

The expert added, “Presently, observing the processes, we see that there is no serious flow of news that may cause growth, but despite this, prices are rising. In December last year, the price of Bitcoin reached $7,500.”

Activity of the black market is the reason for the rise in prices, he noted. “Along with the normal cryptocurrency market and stock exchanges, there is also a black market,” he said. “Operations in this ‘black market’ are carried out through devices without access to the Internet. Bitcoins are stored on memory cards, and then they are transferred offline and people receive cash in exchange. This activity is not noticeable in the market. Therefore, major brokers who form the market rates for cryptocurrency raise prices.”

The cost of Bitcoin (the cost of its mining) is about $3,000, he noted, adding that the price increase will last for some time.

“It is too early to talk about the soon decrease of prices for Bitcoin,” he said. “The price growth rates are determined at major cryptocurrency stock exchanges, and for now we observe a tendency of increase. If the price exceeds $10,000, the growth will continue. Bitcoin may rise to $20,000. Prices for all other cryptocurrencies depend on Bitcoin; with its growth, rates of other similar currencies increase.”