By Hassan Mehmood (Saudi Arabia)
The problem of inflation has been exported outside of the US territories. The regions that are affected by this issue in the umpteenth degree are the Latin American nations. Argentina is one South American country that is suffering from a 100% inflation rate.
These statistics suggest that the country is plagued with the worst inflation storm in 30 years. The first hyperinflation attack on the nation happened in 1991.
In these troubled times, Bitcoin prices have recovered by 83% since the start of the current year. It means that Bitcoin has traded 20% against the Argentinian Pesos. However, the currency has dropped by 34% in comparison to the USD for the same trading duration.
The government of the nation issued some data projections on Tuesday about the CPI appreciation of 6.6% with a 13.1% YTD increase.
The loss of value experienced by the Argentinian Pesos has been felt by the citizens. One such consumer told the media that the masses are struggling to support anything on account of the exorbitant inflation and increase in the cost of living.
The citizen told the media that they were trying to purchase some fruits and vegetables that cost them around 650 pesos or $3.22. They told the media that they were only able to purchase some tomatoes as they did not have sufficient funds on account of inflation.
This country has suffered from one of the biggest inflation margins since 2022 in the world. The inflation rate has doubled since last year, rising to 55%. Therefore, it is no wonder that this region also has the biggest rate of cryptocurrency adoption.
Other countries that are also facing some of the top sets of cryptocurrency adoption are Nigeria and Turkey. These regions are also plagued with an unnaturally high percentage of inflation.
Central Bank of Canada Claims Bitcoin is not an Inflation Hedge due to High Price Volatility
While countries like Turkey, Argentina, and Nigeria are using Bitcoin as a hedge against inflation. There are some other places, like Canada, where the Central Bank has declared it as not an ideal investment on account of relative price volatility.
There are many instances where Bitcoin prices are affected by the policies introduced by the local Central Banks. In the USA, Federal Reserve has announced that it is injecting $300 billion into the economy to help struggling banking enterprises.
Meanwhile, Bitcoin prices have soared by 30% during this week as investors are flocking around crypto markets on account of increasing unrest surrounding the banking enterprises. At press time, Bitcoin is trading at $28K per unit as per CoinMarketCap.
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