Bitcoin searches have seen an unprecedented rise in Argentina when compared to the rest of the world, and many believe the reason could be its annual inflation rate which is currently about 40%.
People from financially troubled nations look for assets that can help them store the value of their earnings thus bitcoin seems to be a reliable option because of the ease of accessibility and the fact that governments can’t ban it. Argentina has accounted for a significant amount of bitcoin volume along with many other South American nations facing high inflation rates with no financial stability.
Argentinians are Googling Bitcoin at unprecedented rates.
Makes sense when you realize they have 40% annual inflation.
— Yano (@JasonYanowitz) January 24, 2021
Bitcoin’s price rise this bull season has attracted the attention of institutions and finance pundits who see it as the next hedging asset, however, many poorer countries like Venezuela, Kenya, and many other African nations have been using bitcoin as a hedging asset as well as a bridge currency, as their main motive is to spend the money without losing its value rather than hodl.
Bitcoin Bringing Financial Freedom to Unbanked and Poor
Bitcoin has a different meaning for different people and that’s what makes it the biggest contender as the future of money. The likes of Microstrategy is using it as a treasury hedge asset, while Paypal is offering bitcoin trading, many asset managers are using it as a store of value while the likes of Argentinian and Venezuelan citizens use it as a bridge currency.
Most of the countries going through a financial crisis see their problem mount further because of the corrupt government, for example, the Argentinian government does not allow for buying more than 200 US dollars a month, Thus forcing them to look for assets such as bitcoin to invest in. One such user on Twitter wrote that looking at the present situation they might become the next Venezuela, a state devastated by hyperinflation.
Im from Argentina, thats because inflation and that we cant purchase more than 200usd a month legally.
We are the next Venezuela
— Geronimo – Blurivant (@GeroBlurivant) January 24, 2021