Gaza resident Noor did not know anything about Bitcoin before her make-up boutique was destroyed during the 2021 war with Israel and she started investing in cryptocurrencies to survive.
“I cannot remember the days we had to endure after the war ended except with misery and despair,” Noor tells The National.
“I struggled all day to help my family. We lacked essential supplies that at some point our neighbours donated to us.”
Destitute and with little prospect of finding work in the crowded Gaza Strip, where a 15-year blockade by Israel has left 44 per cent of the Palestinian territory’s 2.3 million residents unemployed, Noor started learning about trading cryptocurrencies.
From having to rely on handouts, the English Literature graduate made enough money to launch an online make-up store.
“My fortunes changed when I learnt to invest in Bitcoin and started selling make-up online,” she says.
Blockaded Gaza turns to solar — in pictures
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Palestinians in the Israeli-blockaded enclave of Gaza have long endured an unstable and costly electricity supply, so restaurateur and fish farmer Yasser Al Hajj found a different solution – solar power. All photos: AFP -
Mr Al Hajj's seafood restaurant The Sailor, in Gaza. Electricity generated by solar panels is used to provide oxygen for fish pools underneath the eatery and pump water from the sea. -
Savings created by the solar panels over six years are now paying for refurbishments to the business. 'Electricity is the backbone of the project,' said Mr Al Hajj. -
Gaza bakery owner Bishara Shehadeh has installed hundreds of panels on his roof. Surplus electricity generated during the day is sold to the electricity company. -
Next, Mr Shehadeh wants to replace his diesel-powered ovens with electric ones. -
The bakery and fish farm partly relied on foreign donors to kick-start their switch to solar, although their owners are also investing their own cash. -
Financing options are available for Gazans with some capital, like Mr Shehadeh, who got a four-year loan to fund his bakery project. -
At a store selling solar power kits, engineer Shehab Hussein said prices start at around $1,000. Clients include a garment factory and a drinks producer. -
Raya Al Dadah, who heads the University of Birmingham's sustainable energy technology laboratory in the UK, said her family in Gaza has for more than 15 years been using simple solar panels to heat water. -
Despite challenges, such as imports of sophisticated technology being restricted by Egypt and Israel, Ms Al Dadah said solar energy remains 'a brilliant option' for Gaza.
The blockade of Gaza has not only shut Palestinians off from physical international markets, but also financial ones.
The Palestinian Monetary Authority in Ramallah cannot issue banknotes and Palestinians across the West Bank and Gaza are heavily reliant on handouts and international aid as a financial lifeline.
However, the decentralised, online and apolitical nature of cryptocurrencies has opened a path for Gazans seeking to invest internationally.
This is despite the jolt the sector has experienced with the collapse of crypto exchange FTX, which was headed by founder Sam Bankman-Fried.
FTX's filing for bankruptcy on November 11 has cast a shadow over the wider cryptocurrency sector, undermining confidence.
Unlike traditional currency trading, cryptocurrencies like Bitcoin use blockchain — in effect, a decentralised register of trades — to allow peer-to-peer exchanges of the coins with no regulatory oversight or third parties.
Palestinian "financial subordination to Israeli finance regulations" has been ongoing since before the 1990s, says Dr Tariq Dana, an assistant professor of political economy and conflict and a policy adviser for Al-Shabaka, The Palestinian Policy Network.
"Israel has long had huge power in politics, the economy and financial software,” Dr Dana says.
“From a critical perspective, installing an online, practical and secure financial system under Israel’s control is almost impossible.”
But he adds that an increasing number of Palestinians have turned to cryptocurrencies like Bitcoin as an alternative to traditional financial routes.
The anonymous nature of Bitcoin means it is hard to gauge how many Gazans are investing in cryptocurrencies, but anecdotal evidence suggests numbers have grown rapidly over recent years.
“I believe the decentralised bank status of crypto is encouraging enough for us [Palestinians] to have an income through a safe and freelance platform,” says Kareem, a resident of Gaza who trades in Bitcoin.
“I have been in the industry for almost three years and I feel it [removes] the Israeli limitations on our livelihoods.”
However, the turbulent market is also highly risky.
Since the start of 2022, Bitcoin has lost almost 75 per cent of its value, from over $238,000 per coin to just $63,300. This has wiped away the savings and fortunes of many investors.
Haitham Zuhair, a Palestinian businessman, Bitcoin investor and analyst currently based in Dubai, says investors in cryptocurrencies need to monitor the political, economic and military factors that influence the market worldwide.
“Even with the good advantage of crypto, risks of loss are still omnipresent," he says.
"I am certain the drop in Bitcoin price has cost many traders in Gaza so much, because their initial investments and capital are not as high as one would think.
“Education and experience are essential to persist with crypto as a space of online income and a symbolic tool of economic steadfastness in Palestine. It only takes one wrong call to lose an earth-worth profit in crypto.”
While cryptocurrencies have opened the door for many Palestinians to profit from the global trade, it is not a viable avenue for Palestinian authorities, warns Mohammed Khaled, a business journalist in Gaza City.
“It is impossible to make state-level procedures with Bitcoin,” he says.
“Even with the huge adoption of crypto, Palestine doesn’t possess the political or economic force to designate Bitcoin or any other digital currency as the official medium of finance.”
However, as well as the risks of the market, traders also believe that Israeli authorities are going after their gains.
“The crypto exchange system in Palestine is centralised, meaning that Israel can pause deposits and withdrawals,” says Mr Khaled.
Aftermath of Israel-Hamas fighting — in pictures
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Rahaf Salman, 11, lost her limbs during Israel-Gaza fighting. Reuters -
Najwa, mother of 19-year-old Palestinian Khalil Abu Hamada, who was conceived through IVF and killed in a missile strike in latest Gaza-Israel fighting, holds his pictures at her home in Jabalya refugee camp, in the northern Gaza Strip. Reuters -
Palestinian children are entertained amid the rubble. AFP -
An Egypt-brokered ceasefire reached late on August 7 ended the intense fighting that killed 46 people including 16 children and wounded 360 in the enclave, according to Gaza's health ministry. AFP -
A performer tries to bring happiness to the children in Gaza. AFP -
Intense fighting killed 46 people, including 16 children, and wounded 360. AFP -
A Palestinian clown carries a child during a show amid the rubble of a building destroyed in the latest round of fighting between Israel and Palestinian militants in Rafah in the southern Gaza Strip. AFP -
A Palestinian from the Shamalagh family inspects their damaged home in Gaza city early on Tuesday after a ceasefire between Israel and Palestinian militants came into force. AFP -
Wounded Palestinian Rayed Qadoom lies near a poster depicting his five-year-old sister Alaa, who was killed during the latest conflict between Israel and Palestinian militants in Gaza. AFP -
Alaa was the first of 16 children killed in three days of intense conflict between Israel and Islamic Jihad militants in the densely populated Palestinian enclave of Gaza. AFP -
Mourners carry the body of a Palestinian killed in an explosion at Jebaliya refugee camp near the northern Gaza Strip. AP -
Palestinians attend the funeral of Yasser Al Nabhin and his three children at Al Bureije refugee camp in the central Gaza Strip. EPA -
Palestinians carry the bodies of Yasser Al Nabhin and his three children at Al Bureije refugee camp in the central Gaza Strip. EPA -
Palestinians search through the rubble of a building in which Khaled Mansour, a top Islamic Jihad militant, was killed in an Israeli airstrike on Sunday, in Rafah, southern Gaza Strip. AP -
A Palestinian man sits inside his damaged home in Gaza City. AFP -
Relatives of Khaled Mansour react to his death. AFP -
Israeli children draw on a wall as they stay with their family in a bomb shelter following rockets fired from Gaza towards Israel, in Ashkelon, Israel on Sunday. Reuters
Crypto trader Mohammed Awni from Gaza says that while he initially earned a good return, his digital savings have disappeared.
“At the beginning of my tenure in crypto trading, everything seemed excellent and I had an opportunity to have a four-times return for my capital," he says.
"I started planning to get married, only to find out my earnings were gone in the blink of an eye.
“I worked hard to make $6,000. It was my only hope to marry the girl I love. But my dream has been crushed.
"When I sought an explanation from others with similar experiences, it turned out the Israeli military had confiscated my digital wallet for no reason at all.”
Outgoing Israeli Defence Minister Benny Gantz has authorised the military to seize crypto wallets that they believe are being used to fund Hamas — Gaza’s hardline leadership, which is listed as a terrorist group by Israel, the US, the EU and others.
Hamas officials say the campaign of seizures is wider than targeting funding for the group, and that the Israeli military is going after ordinary citizens as well.
Mr Awni says cryptocurrencies have been good business, giving people opportunities and work that would otherwise be closed off in the blockaded strip.
But he says this will not be enough unless there is the “immediate stop of the Israeli full control of the economy, as well as the seizure and confiscation of digital wallets — our people's only means of survival”.
