Bitcoin Emerges as a Safe Hedge in Argentina Amidst Inflation Fears
Argentina citizens voted Bitcoin was the safest way to invest and save money during a time of crisis, according to the results of a survey released by crypto firm Paxful this week.
Crypto the “Safest” during Crisis
The survey found out that of 1,113 Argentineans, over 75% said they would choose Bitcoin and other cryptocurrencies in a time of crisis. Meanwhile, over 68% of all test-takers said crypto was the “safest” financial tool to park money.
The country is currently undergoing one of its worse economic times in recent years, with some reports terming it the “worse” financial period.
But in crypto in where young Argentineans are putting their trust. Survey-takers said they have managed to preserve their purchasing power using Bitcoin and other cryptos ahead of their own fiat.
After recently suffering one of the worst financial crises in their history, some Argentineans have managed to preserve their purchasing power by exchanging cash for Bitcoin and other cryptocurrencies.
However, survey results threw up some interesting data, apart from the fact that it was conducted by a local crypto news outlet which may have skewed the results in Bitcoin’s favor.
Many test-takers said they do not understand cryptocurrencies, including but not limited to how they work, why they exist, and other such technical details. In the same vein, nearly 24% of respondents said they did not want to invest in crypto due to a lack of familiarity with blockchains, while 8% feared losing their money to an unknown altcoin.
The Virus Leads to Bitcoin Growth
Test results showed that the crypto usages of some Argentineans crypto usage went up as the ongoing coronavirus pandemic gained in its impact on the country’s economic prospects.
Magdiela Rivas, Paxful’s Latin America manager, commented in a blog post:
“During this year we have observed a major increase in the operations carried out by Argentine users on our platform, especially since the pandemic started, registering an increase of 37.5% in the volume compared to the previous periods.”
The comments are not surprising. Since 2020, data shows Argentina and its Latin neighbor Venezuela has recorded the biggest trading volumes.