Recently, according to a report from AOFEX, users from Argentina increased massively. The reason is likely related to the galloping inflation in Argentina. Locals urge for risk-preventing emotions and actions, many chose investing in mainstream cryptocurrencies to maintain the actual value of their assets.
The Argentine Central Bank tightened the policy of local legal currency — peso for three times this March, but the performance of peso are not meliorating at all. The inflation rate of Argentina peso raised 55% till the end of March, and hasn’t changed this April. Argentina peso is the legal currency with the worst performance this year, which lead to economic recession with out-of-control inflation. In other words, the purchasing power of Argentina peso shrunk excessively.
Due to the declining performance of Argentina economic, locals cannot keep up the speed of rapid depreciation in legal currency. In order to prevent commodities inflation and other chain reactions, the government of Argentina has frozen the prices of up to 60 types commodities and services. However, citizens already lost their faith in peso, because they are purchasing fixed-assets, gold, Bitcoins and other mainstream cryptocurrency fight against inflation.
It is not the first time Argentinians buy cryptocurrencies to deal with inflation. The inflation rate has been equivalent or above 14%. Argentinians have been able to buy small amounts of Bitcoins in convenient stores since 2014.
Bitcoin became the efficient method of dealing with inflation in Argentina. If the government of Argentina support and promote cryptocurrency even more, needs for US dollars for locals are likely to drop down, furthermore, it influences positively because the results steady the local market, and attract more investors from all over the world.
As a matter of fact, the government of Argentina has been exploring the possibilities of cryptocurrencies and blockchain for the imminent collapse of economics. BMV Argentina allows clients pay via Bitcoin and transact globally, which means BMV will be the first bank that accept Bitcoin as an international standard payment method.
Meanwhile, other scenarios of using Bitcoin have been bloomingly developed. You could pay cryptocurrencies in over 260 Merchants; Argentinians could even deposit SUBE (Public transportation card) by Bitcoin.
In short, such depreciation in Argentinian pesos stimulates or enhances the need of Bitcoins.
Unsurprisingly, purchasers of Bitcoins have grown since no indications suggesting Argentinian fiat would perform better. According to research by AOFEX, the transaction of Bitcoin has reached the peak, and the transaction number is still growing.
From Argentinian investors’ point of view, Bitcoin is likely to continue rising significantly, whereas Argentina Peso keeps depreciating. Switching fiat into Bitcoin to fiat cannot only avoid loss caused by inflation, but also generating profit.
While Argentinians select digital asset exchange platforms, security always comes first. Stating the obvious, nobody wants their assets stolen by hackers even though they avoided inflation. Security is one of the main reasons that they choose AOFEX.
Based on previous experience, citizens tend to buy cryptos when serious inflation happens to a legal currency, which ultimately causes an extremely positive change in Bitcoin prices. As a result, other prices of crypto successively. For instance, some opinions insisting that the price of Bitcoin raised 20% this April is highly relative to the fall in exchange rate, stocks and bonds in Turkey.
Most Digital asset investors believe that Argentinian investors’ actions on AOFEX impact positively on Bitcoins prices, which is also a perfect time for investors to start trading in this market.