Argentina’s Response to Inflation Hits US Dollar & Turning To Bitcoin

According to a recent Bloomberg story, people in Argentina are using Bitcoin (BTC) as a hedge against currency devaluation due to the country’s startling 276% annual inflation rate. The pattern demonstrates the public’s rising mistrust of conventional financial assets.

Bitcoin purchases have increased dramatically on the Argentine-based cryptocurrency exchange Lemon, with transaction volumes more than tripling from the previous year. The exchange saw an astounding 35,000 Bitcoin transactions in the week ending March 10th alone, suggesting that interest in the leading cryptocurrency has increased.

In a same vein, significant exchanges like as Ripio and Belo have noted a noteworthy increase in the buying of Bitcoin and Ethereum (ETH). CEO of Belo Manuel Beaudroit noted that acquisitions of Bitcoin and Ethereum increased tenfold in 2024 over the prior year, indicating a dramatic change in investor preferences.

Decline in USD Appeal

In recent months, the US dollar’s appeal as a safe-haven asset has diminished, with Bitcoin emerging as the preferred substitute. Amidst a notable 60% increase in value for Bitcoin in the same time frame, the Argentine peso saw just a meager 10% rise versus the US dollar, leading many to reevaluate their investing approaches.

Economist Nicolas Gadano estimates that Argentine savings in US dollars amount to almost $200 billion, ranking them among the world’s greatest reserves. To protect their money and interests, residents are increasingly resorting to alternative assets as inflationary pressures rise.Argentina’s Response to Inflation Hits US Dollar