Argentines are increasingly buying Bitcoin (BTC) as a way to protect their savings from the country’s rampant inflation, which currently stands at 276%.
Shift from US Dollar to Bitcoin
The US dollar has traditionally been a safe haven for Argentines, but its appeal has waned in recent months as Bitcoin’s value has surged. Over the past two months, Bitcoin’s value in US dollars has increased by 60%, while the Argentine peso has gained only 10% against the greenback.
Crypto Exchanges See Surge in Bitcoin Purchases
Cryptocurrency exchanges in Argentina, such as Lemon, Ripio, and Belo, have reported a significant increase in Bitcoin purchases. Lemon, for example, saw 35,000 Bitcoin transactions in the week ending March 10th, double the weekly average last year.
Bitcoin as a Hedge Against Inflation
According to economist Nicolas Gadano, Argentines hold approximately $200 billion in US currency savings. However, locals are now turning to Bitcoin and other cryptocurrencies as a way to protect their wealth from inflation.
Disclaimer
The views expressed in this article do not constitute investment advice. Investors should conduct their own research before making any high-risk investments in Bitcoin or other cryptocurrencies.
