Cryptocurrency Dilemma During Iran's Nationwide Internet Outage: How 7 Million Users Trade Offline

Iran implemented a nationwide internet blackout today, causing difficulties for approximately 7 million cryptocurrency users. However, amidst this digital blockade, a series of offline trading solutions are emerging, from satellite internet to Bluetooth mesh networks, highlighting the application value of cryptocurrencies in extreme environments.

Scale and Background of the Blackout

According to the latest reports, Iranian authorities imposed a nationwide blackout today (January 9) due to the spread of anti-government protests and the Rial exchange rate falling to historic lows. Cloudflare data shows that since 18:45 UTC (22:15 local time in Iran), Iran’s internet traffic has nearly dropped to zero, and NetBlocks describes this as a “nationwide digital blockade.”

The root causes of these protests are high inflation, currency collapse, and livelihood pressures, which have recently escalated following calls for large-scale demonstrations by the exiled crown prince. The authorities’ blackout measures clearly aim to restrict the spread of protest-related information.

Cryptocurrency User Base

According to TRM Labs data, from January to July 2025, the total cryptocurrency circulation within Iran was approximately $3.7 billion. This blackout directly impacts the trading activities of about 7 million cryptocurrency users. In the context of Iran’s severe economic crisis, many of these users are utilizing cryptocurrencies to protect assets and hedge against the devaluation of the local currency.

Offline Trading Solutions Emerge

Interestingly, in this extreme environment of nationwide disconnection, various offline trading technologies are being activated or accelerated. These solutions demonstrate the technological resilience of the crypto ecosystem.

Satellite Internet Solutions

Starlink satellite internet has been activated within Iran, providing high-speed connectivity. The Blockstream satellite network also supports broadcasting Bitcoin data globally, offering users a way to bypass ground networks.

Bluetooth Mesh Networks

Decentralized communication services based on Bluetooth mesh networks, such as Bitchat, have been downloaded over 1.4 million times since release, supporting direct transfer of transaction data between phones. This means users can transmit transaction information via Bluetooth in the absence of internet connectivity.

Long-Range Radio Solutions

Developed by Cyb3r17, the Darkwire project uses long-range radio technology to create mesh networks capable of transmitting Bitcoin transactions without internet access. South African developer Kgothatso Ngako’s Machankura supports users in sending and receiving Bitcoin via telecom networks (rather than the internet).

Practical Limitations of These Solutions

It is important to note that these offline solutions still require connected devices to upload transactions to the blockchain for confirmation. This means they can facilitate the flow of transaction information during disconnection, but final on-chain confirmation still depends on network recovery.

Exploring New Uses for Cryptocurrency

In this crisis, Hunter Horsley, CEO of Bitwise, suggested using Bitcoin as a store of wealth. This reflects the positioning of Bitcoin as a “store of value” rather than a “medium of exchange” in extreme environments.

From Iran’s case, cryptocurrencies demonstrate value on three levels:

• Asset Protection: Providing tools to hedge risks amid currency devaluation
• Transaction Resilience: Offline solutions enable transaction information to circulate even during nationwide disconnection
• Information Freedom: Satellite internet and mesh networks offer alternative channels for information transmission

Market Context

The current Bitcoin price is $90,882.61, up 0.78% in the past 24 hours, with a market share of 58.38%. Against the backdrop of escalating global geopolitical tensions, demand for Bitcoin as “digital gold” may continue to be supported.

Summary

Although Iran’s nationwide blackout has caused difficulties for 7 million cryptocurrency users, it also exposes a reality: when traditional networks are cut off, multi-layered offline trading solutions are being activated. From satellite internet to Bluetooth mesh networks, from long-range radio to telecom networks, the crypto ecosystem is demonstrating its adaptability in extreme environments.

This is not only a technological race but also a fundamental question: in an era of information censorship and network control, can cryptocurrencies and related technologies become tools to protect property and freedom? Iran’s blackout may accelerate the practical application and improvement of these offline solutions.