How Popular Is Bitcoin in Kuwait?

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In the last decade, the popularity of Bitcoin has soared in tandem with its market price. At the time of writing, a single bitcoin was worth over $60,000 USD, or more than 18,000 KWD. Clearly, this cryptocurrency has gone from the exclusive domain of tech specialists and cyber boffins to mainstream appeal in just a few years.

Interestingly enough, the cryptocurrency is more widely available and more sought-after in some countries compared to others. A handful of governments have banned it outright, including those in Bangladesh, Ecuador and Algeria. However, others, like El Salvador, have endorsed it wholeheartedly, even going as far as to name Bitcoin legal tender in the country. Where does Kuwait fall in this spectrum? And just how popular is the currency with the Kuwaiti people?

Is Bitcoin legal in Kuwait?

In 2017, the Kuwaiti government took the bold step of banning financial institutions from trading bitcoins, claiming that its volatility made it an unsafe asset for banks and other establishments. Furthermore, the Ministry of Finance announced that it was not in a position to regulate the cryptocurrency, thus ruling out of its adoption as official legal tender in the foreseeable future.

However, that does not mean that Bitcoin is illegal in Kuwait. Indeed, the currency is not currently regulated by any entity in the country, meaning that everyday Kuwaiti citizens are free to buy, sell, trade, invest and gift bitcoins as they see fit. This lack of regulation, alongside the enormous potential gains to be made from Bitcoin, have seen its popularity rise in Kuwait.

A mining Mecca

There is one other reason why Bitcoin is wildly popular in Kuwait – the affordability of mining. For the uninitiated, “mining” bitcoins is the process which verifies transactions in the cryptocurrency’s blockchain, thus meaning it’s the mechanism which guarantees Bitcoin’s security. There are also financial rewards for those dedicate time and energy to mining coins.

However, mining involves using sophisticated computer processing units to solve complex mathematical equations. This consumes vast amounts of electricity, while even more energy is required to cool down the processors as they perform these calculations. While the year-round heat experienced in Kuwait might make it seem like an unlikely hotspot for mining activities, a study performed by Elite Fixtures found that the low price of energy in Kuwait made it one of the most cost-effective locations to mine bitcoins in the world.

Where to buy and spend bitcoins

Of course, not everyone in Kuwait has the computer processing power at their disposal to mine bitcoins. However, that doesn’t mean that ordinary Kuwaitis cannot take advantage of the security, anonymity and investment opportunities offered by Bitcoin. The best place to buy the currency is through a reputable and reliable broker, such eToro, CEX or the local platform, Rain.

As for spending bitcoins, a growing number of online retailers are beginning to accept Bitcoin as a valid currency. However, an increasingly popular option is to visit an online gambling site which accepts cryptocurrencies, such as Bitcasino in Kuwait, which offers visitors the chance to gamble their tokens and earn more of them through slots, table games and sports betting.

Bitcoin is enjoying growing popularity in many countries around the globe at the moment. Due to the low mining costs, high investment returns and other unique advantages associated with the cryptocurrency, it’s also hugely popular in Kuwait.

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