Although Bitcoin has been in a downward trend lately, there is no decrease in interest in BTC. Because Bitcoin purchases have peaked in Argentina, one of the countries with very high inflation.
According to Bloomberg, Bitcoin purchases in Argentina increased by 100% last week, as inflation reached 276%.
Citizens of the country buy Bitcoin instead of exchanging it for dollars in order to maintain the value of the peso, the fia currency, which is melting in the face of high inflation.
At this point, Bitcoin purchases in Argentina, one of the countries that have adopted Bitcoin at the highest level in the world, approached the highest weekly value in 20 months on the local cryptocurrency exchange Lemon, which is the most popular in the country.
Lemon recorded almost 35,000 customer transactions to purchase Bitcoin in the week ending March 10, digital wallet Belo CEO Manuel Beaudroit said in a statement to Bloomberg.
” Users decide to buy Bitcoin every time they see the news that the fiat currency is rising. Besides BTC, stablecoins are often used for practical transactions and international payments.
At this point, Bitcoin and Ethereum volume has increased tenfold on the digital wallet Belo in 2024 compared to the same period last year.
As Bitcoin's rise attracted more buyers, stablecoin purchases dropped from 70% to 60% over the same period.
“With the Bitcoin price increase, Argentinians, after years of relying on the dollar, are now diversifying their investments and exploring investment opportunities such as BTC to hedge against inflation.”
*This is not investment advice.