Argentines turn to Bitcoin amid continued hyperinflation
Bitcoin adoption in Argentina surged to 12%, double the rate of other South American countries such as Peru and Mexico, according to a new report by America’s Market Intelligence (AMI)
Bitcoin adoption has been spurred on by rampant inflation of 50% and more that has continued to erode the value of the peso. Argentines have had to look elsewhere to preserve their savings
Inflation in Argentina is predicted to continue at current levels this year. While Argentines stockpile goods to exercise some form of control over their buying power, the government says it is approaching cryptocurrency with caution, having no formal regulation in place and forbidding financial entities to provide services related to digital assets
Year-on-year inflation in Argentina over the last two years has continued unabated at 50% or more. At this rate, any investment made today would be nullified within two years. As noted by the Washington Post, if inflation persists at 1% per week, money in the bank loses its value by the day.
Argentines have had to look elsewhere to preserve their capital, many choosing Bitcoin as an inflation hedge, even amid turbulence in the crypto markets. Many have also resorted to taking out loans, provided the interest rate is lower than inflation, and stockpiling goods to regain some form of control over the value of their money. Many have also looked for stability in stablecoins that are pegged to the Dollar.
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