- The local Brazilian currency devalued by more than 30% against the US dollar.
- Bitcoin has just broken price records in Argentina, Brazil, and Turkey with a growth of 169%, 20%, and 5% respectively.
- Coin Dance stated that Bitcoin is gaining not only in Brazil, Argentina and Chile but also rising in Egypt, South Africa
While Pandemic has triggered a capital flight and rapid inflation in local currencies of many countries with traders planning to make complicated lending strategies, Bitcoin became the only solution to overcome this financial crisis. A report by Arcane research revealed that over the last two months, bitcoin has just broken price records in Argentina, Brazil, and Turkey with a growth of 169%, 20%, and 5% respectively.
A Financial Turmoil
Both Brazil and Argentina are one of those countries which were experiencing financial crises long before the pandemic and this corona has made things worse. Argentina, Brazil, and Venezuela ended with serious economic problems like huge inflation rates. In the light of pandemic, the local Brazilian currency devalued by more than 30% against the US dollar. These are some of the good reasons for Brazil to adopt cryptocurrencies like Bitcoin.
Argentina is often named as the City of Fury with a weak economy and a currency that has been losing its value quickly. With a unique economic situation, Argentines might want to avoid the notorious volatility of their peso and hold their money in stable cryptocurrency, though they have to be persuaded. The Government openness to blockchain initiatives has helped form Bueno Aires right into a hub for developers. Mauric, President of Argentina had shown the signs of implementation of Bitcoin in the country through his Social Presence.
Ripio and MakerDao – cryptocurrency exchanges had made efforts in building trust among the people of Argentina and Brazil to use cryptocurrency for buying, selling, and many other prospects. An easy-to-use digital version of Dollar, Ripio often compelled them and now had more than 300,000 users in Argentina and Brazil.
Bitcoin – A Ray of Hope
With little other safe retreat options for assets, the demand for bitcoin has surged rapidly. Most Argentines appear to be turning to Bitcoin in huge numbers as potentially a way to protect against the devaluation of local currency.
According to Useful Tulips, Brazil has noted a new all-time high in Bitcoin with more than $70,000 trading volume last week. Meanwhile, Argentina surpassed $1 million in weekly Bitcoin trading volume last week.
Coin Dance stated that Bitcoin is gaining not only in Brazil, Argentina and Chile but also rising in Egypt, South Africa as well which are looking to reopen their economies in spite of the disease continuing to spread to the developing world. The majority of investors are changing their investment targets to protect their assets.