Bitcoin demand surges in Argentina to the highest level in 20 months amidst inflation exceeding 270%
Bitcoin is becoming increasingly popular in Argentina as the country grapples with soaring inflation rates, according to data from local crypto exchange Lemon Cash. The exchange’s data shows a significant increase in Bitcoin transactions, with the weekly value nearing a 20-month high. This surge in interest coincides with President Javier Milei’s implementation of shock therapy policies aimed at revitalizing the economy, leading Argentines to seek alternative financial security options.
With Argentina experiencing an annual inflation rate of 276%, citizens are turning to Bitcoin as a hedge against economic instability. Lemon Cash reports nearly 35,000 Bitcoin purchases in the week ending March 10, double the previous year’s weekly average. Similar trends are observed across other exchanges in the country. Chainalysis, a blockchain analytics firm, has previously highlighted Argentina as the leader in raw crypto transaction volume in Latin America, with an estimated value received of $85.4 billion. The country also ranks second in the region for grassroots adoption of cryptocurrencies.
As Argentines look to protect their wealth from inflation, Bitcoin is gaining traction as an alternative investment. However, the growing interest in crypto has also resulted in an increase in scam activity. Bitcoin Argentina, a local non-governmental crypto organization, reports a fivefold increase in crypto-related scams in February this year. Gabriela Battiato, the organization’s head of legal, has issued warnings about the risks associated with impulsive investment decisions in the volatile crypto market.
Overall, Bitcoin’s popularity in Argentina is driven by the need for financial security amidst high inflation rates. While it offers a potential hedge against economic instability, investors must also be cautious of the rising scam activity in the crypto market.
