Crypto Soars as National Currencies Falter: Bitcoin’s Global Impact
Bitcoin (BTC) stands significantly below its all-time high of $69,000, but it has recently demonstrated remarkable strength when compared to the currencies of Argentina, Nigeria, and Turkey.
Despite maintaining a global value of around $35,000, Bitcoin has surged in these nations, reaching unprecedented levels: 12.17 million Argentine pesos (ARS), 979,017 Turkish liras (TRY), and 28.44 million Nigerian nairas (NGN). The persistent challenge of hyperinflation in these countries primarily drives this surge.
All three countries face a common problem – rapidly rising inflation, with Argentina experiencing triple-digit inflation. As a result, Bitcoin has emerged as the preferred alternative among the local population due to economic hardships and currency devaluation.
Notably, these figures result from continuous currency devaluation, exacerbated by Bitcoin‘s recent 16% price increase. Both the Nigerian naira and Turkish lira recently hit all-time lows against the U.S. dollar, underscoring their severe economic challenges. The Argentine peso remains dangerously close to its historical low against the U.S. dollar.
The International Monetary Fund (IMF) reports that the Venezuelan bolivar has the world’s highest annual inflation rate at 360%, followed by the Zimbabwean dollar at 314%, the Sudanese pound at 256%, and the Argentine peso at 122%. The Turkish lira and Nigerian naira rank sixth and fifteenth globally in terms of annual inflation rates, with rates of 51% and 25%, respectively.
In Nigeria, cryptocurrency transactions have seen a significant 9% year-on-year increase, totaling 56.7 billion as of June 2023. In Turkey, approximately eight million people, nearly 10% of the population, have turned to cryptocurrencies, with Bitcoin as their preferred hedge against high inflation.
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In Argentina, Bitcoin plays a central role in economic and political discussions, especially with an upcoming presidential election. Politicians are leveraging cryptocurrencies to gain voter support, recognizing their significant influence on the nation’s financial landscape.
Enthusiasts have long viewed digital assets like Bitcoin and stablecoins as effective safeguards against rising inflation. Recent data from a Chainalysis report dated September 12 highlights the increasing popularity and recognition of cryptocurrencies as essential financial tools in these nations, with Nigeria, Turkey, and Argentina ranking second, twelfth, and fifteenth globally in terms of cryptocurrency adoption rates.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
