- A recent cryptocurrency survey in Argentina unveiled that almost 73% of Argentines agreed that cryptocurrencies can protect their funds against inflation.
- The survey was conducted by Cripto247 on behalf of Paxful which is one of the largest P2P Bitcoin marketplaces.
A recent cryptocurrency survey in Argentina unveiled that almost 73% of Argentines agreed that cryptocurrencies can protect their funds against inflation and the current economic scenario. The survey was conducted by Cripto247 on behalf of Paxful which is one of the largest P2P Bitcoin marketplaces. The Paxful survey revealed that during the times of economic crisis their sentiments on using crypto effectively as a hedge against inflation remains strong. The citizens of Argentina are willing to explore new forms of investments to protect their assets from the ongoing crisis that has crippled the economy of the country.
Argentina hit bad by Inflation
A year ago the inflation rate in Argentina hit 54% which is apparently the highest since 1991. Consequently, the Argentine peso faced quite devaluations and constantly lost its value. With high rates of unemployment and growing poverty the country is struggling to regain its lost economy. However, the inflation rates recorded in this year’s July stood at 40.6% implied slight improvement which can be explained by the new administration. Previously, we have seen Venezuela utilising cryptocurrency to protect their funds from hyperinflation and economic instability. Venezuela was ranked third in both peer to peer marketplace and in overall cryptocurrency adoption. Argentina being in a similar situation can leverage and step up their country’s crypto adoption.
Cryptocurrencies Have to Potential to Secure Their Funds Against Inflation
The Paxful survey was conducted over 1113 citizens aged from 18 to 55 years. Among the participants, 85.6% were male confirmed Paxful. A total of 69.5% respondents confirmed that they invested in cryptocurrencies owing to its potential to provide a security for their funds at the times of economic mayhem and inflation. Almost 68% respondents believed that cryptocurrency investments are safer than their country’s fiat currency. When specifically inquired about Bitcoin, it was found that 53.9% BTC investors bought BTC because of its enormous potential. About 50.6% of respondents said that BTC’s potential was driven by its decentralised nature. The remaining 49.1% invested in BTC because it can provide security without involving banking institutions.
Inflation Rates Will Increase, Crypto may Play a Important Role
According to the media agency, Reuters Argentina’s economy is anticipated to shrink by 12% instead of the previous estimated 9.4%. Prices have already risen by 2% since June and it is expected to rise because of the ongoing coronavirus pandemic. Analysing the current economic conditions in Argentina, cryptocurrency has a huge role to play. Cryptos can facilitate citizens of Argentina to regain their control over their finances and create a much required environment of security.