How is the garment industry in Armenia affected by Bitcoin?

Bitcoin and cryptocurrency are having a massive impact on the garment industry in Armenia. The market in Armenia is largely unregulated, but there are plans to bring the market under national control. Check here how diversify your bitcoin portfolio .

9 Ways Bitcoin Benefits Armenia’s Garment Industry:

1. First and foremost, the entire industry is unregulated. It turns out that many people use bitcoin in Armenia to avoid paying taxes on clothes and paying business-related expenses (insurance, utility bills, etc.)

2. Bitcoiners can use bitcoins to purchase goods directly overseas. In this way, you can get good quality products, such as jeans (Levis, Wrangler, etc.), Nike shoes and other branded clothing at a much better price.

3. There is no official exchange rate between the US dollar and the Armenian dram, which makes it difficult to do business in Armenia.

You can buy bitcoins with dollars and sell them on LocalBitcoins to convert them into drams. This way, you can avoid the volatility of bitcoin and make it an asset that you sell for local currency.

4. There are an average of 3,000 new bitcoin users in Armenia each month, according to unconfirmed reports on Facebook groups related to cryptocurrencies in Armenia. As more and more people start using bitcoins, there is also a growing demand for the clothes they buy with bitcoins.

5. The growing demand for bitcoin is also driving a growing demand for warehouses and commercial real estate, making it more profitable to rent such space.

6. More people using cryptos in Armenia means the government cannot ignore this fact and stay with outdated regulations (or lack thereof) that are hampering the growth of this market.

7. although 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 yet to be passed).

As a result, Armenians can now open crypto businesses without worrying about legal ramifications or political intervention.

8. The clothing industry in Armenia is unregulated, which means we can expect more and more entrepreneurs to start earning a living by buying clothes with bitcoins.

9. In case of increasing demand for cryptos/bitcoins in Armenia, there will be fewer opportunities for arbitrage between different currencies on online exchanges.

This means that people around the world will have more incentive to buy bitcoins in their country and sell them on local bitcoins in Armenia.

7 Negative effects of bitcoin on the garment industry in Armenia:

1. The whole industry is unregulated. This means that taxes are rarely paid and there is virtually no protection for Armenian citizens buying clothes from bitcoiners through online stores such as eBay.

2. Bitcoin users in Armenia cannot use bitcoins to pay their taxes, so they do not have any practical advantages over those who use other payment methods.

3. Although the absence of regulation in the clothing industry is very profitable for individual bitcoiners, it cannot significantly benefit the whole country due to legal limitations imposed by existing laws (for example, the tax law).

4. The lack of regulation means there is no protection for bitcoiners when buying clothes from strangers. For example, there is no guarantee that the clothes you buy will be delivered to your address or that they will not simply disappear.

5. The lack of regulation also means that many bitcoin funds are frozen when purchasing clothes from an online store (e.g. eBay). The seller can issue a refund and keep all bitcoins without warning, without any consequences.

6. Although bitcoiners are becoming more market-aware, some “old-school” merchants refuse to work with bitcoins because they don’t understand cryptocurrencies.

Like many other countries around the world, there is a growing demand for bitcoins among merchants, but they face serious problems when trying to get their hands on it.

7. Although there is an increasing demand for bitcoin among merchants, they face problems in acquiring it. This means that we can expect more and more merchants to start accepting bitcoins shortly without selling them.

Conclusion:

Bitcoin in Armenia has several issues that prevent it from being a reliable payment method for merchants. However, most of these issues are temporary and can be fixed quickly. This means that this currency will be much more useful when all the problems are solved than many other currencies in our country.

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