Only two functional ATMs remained in Gaza by early 2025, according to the World Bank, forcing residents to rely heavily on cryptocurrencies like Tether (USDT) for financial transactions amid the wreckage of ongoing conflict.
Trading Amid Debris and Disruption
A video circulating in the crypto community shows a trading setup inside a makeshift tent in Gaza rubble, featuring multiple screens displaying live price charts and handwritten notes plastered on the walls. The contrast is stark: a Palestinian flag hangs over the desk, while broken concrete and flattened buildings lie just outside the tent. This image has become a symbol of resilience and tenacity, with traders across social media urging others to quit complaining about Bitcoin’s price swings when someone trades through war-torn conditions.
Despite the seemingly high-tech array of devices, trading here is far from smooth. Power outages and unstable internet connections regularly interrupt sessions. Consistent gains are elusive, but many remain committed to the market, driven partly by necessity.
Crypto’s Vital Role in Gaza’s Economy
Gaza’s banks suffered massive damage during the conflict, decimating traditional financial infrastructure. With more than 90% of ATMs out of service, people turned to digital assets to facilitate money transfers and payments. Tether stands out because it maintains a stable value close to one US dollar, making it a popular choice for everyday use. Roughly half of Gaza’s crypto exchange shops handle USDT, helping funds reach families quickly.
Yet, converting crypto to cash comes at a steep cost. Brokers charge 30 to 40 percent fees, a sharp increase from the roughly 1% taken before the war. PayPal and Western Union withdrawing from the region pushed further adoption of Bitcoin as an alternative, though platforms like Binance have frozen accounts, sometimes holding tens of thousands of dollars and citing security concerns linked to the conflict.
Struggling Economy and Daily Hardships
UNCTAD describes Gaza’s economic collapse as the worst ever recorded. The average annual income is about $161 per person, equating to less than 50 cents a day. Approximately 90% of the population has been displaced, many forced into tents similar to the trader’s workspace seen in the viral video. Life’s brutal reality contrasts sharply with images of crypto influencers enjoying luxury elsewhere on the globe. Gaza’s traders cope with unstable internet, blackouts, and destroyed infrastructure while trying to navigate global markets.
This material is for informational purposes only and is not financial advice.
