How is the Clothing Industry of Armenia Affected by Bitcoin?
Bitcoin and Cryptocurrency have a massive impact on Armenia’s clothing industry. The market in Armenia is largely unregulated, but there are plans to bring the market under national control. Check here how to diversify your Bitcoin portfolio .
9 Ways how Bitcoin Benefits the Armenian Clothing Sector:
- First and foremost, the whole industry is unregulated. As it turns out, many people use bitcoin in Armenia to avoid paying taxes on clothes and paying for the costs of doing business (insurance, utility bills, etc.)
- Bitcoiners can use bitcoins to purchase goods directly from abroad. This way, you can get good quality products, such as jeans (Levis, Wrangler, etc.), Nike shoes, and other branded clothing for a much better price.
- There is no official exchange rate between the US dollar and the Armenian dram, making it hard to do business in Armenia.
You can buy bitcoins with dollars and sell them on LocalBitcoins to convert them to drams. This way, you can avoid the volatility of bitcoin and turn it into an asset that you sell for local currency.
- There are on average 3000 new bitcoin users in Armenia every month, according to unconfirmed reports on Facebook groups related to cryptocurrencies in Armenia. As more people start using bitcoins, there is also a growing demand for the clothes they buy with bitcoins.
- The growing bitcoin-related demand also brings an increasing demand for warehouses and commercial real estate, making it more profitable to rent out such spaces.
- More people using cryptos in Armenia means that the government cannot ignore this fact and stay with outdated regulations (or absence thereof) that hinder the growth of this market.
- even though there are currently no regulations in place, the Armenian government is already drafting laws for this sector; These included articles that regulate how to buy and sell bitcoins (however, the law has not yet passed).
As a result, Armenians can now open crypto businesses without worrying about legal consequences or political intervention.
- Armenia’s clothing industry is not regulated, which means that we can expect more and more entrepreneurs to start making a living out of buying clothes with bitcoins.
- In the case of the growing demand for cryptos/bitcoin in Armenia, there will be fewer arbitrage opportunities between different currencies on online exchanges.
This means that people worldwide will have a higher incentive to buy bitcoins in their countries and sell them on local bitcoin in Armenia.
7 Negative effects of bitcoin on the clothing industry of Armenia:
- The whole industry is unregulated. This means that taxes are rarely paid, and there is virtually no protection for the citizens of Armenia who buy clothes from bitcoiners via online shops such as eBay.
- Bitcoin users in Armenia can’t use bitcoins to pay their taxes, so they don’t enjoy any practical advantages compared to those using other payment methods.
- Although the lack of regulation in the clothing industry is very profitable for individual bitcoiners, it can’t significantly benefit the whole country due to legal limitations imposed by existing laws (e.g., tax law).
- Lack of regulation means there is no protection for bitcoiners when buying clothes from unknown persons. For example, there are no guarantees that the clothes you buy will be delivered to your address or that they won’t simply disappear.
- Lack of regulation also means that many bitcoins funds get frozen when buying clothes from an online store (e.g., eBay). The seller can issue a refund and keep all the bitcoins without warning, without any consequences.
- Although bitcoiners are becoming more aware of the market, some “old school” merchants refuse to work with bitcoins because they don’t understand cryptocurrencies.
Like many other countries worldwide, there is a growing demand for bitcoins among merchants, but they face serious problems when trying to get their hands on them.
- Although there is a growing demand for bitcoin among merchants, they face problems acquiring it. This means that we can expect more and more merchants to start accepting bitcoins shortly without selling them.
Bitcoin in Armenia has several problems that prevent it from being a reliable form of payment for merchants. However, most of these problems are temporary and can be solved shortly. This means that this currency will be much more helpful when all the kinks are ironed out than many other currencies in our country.