- Argentina has seen a significant influx of funds into bitcoin.
- Demand for the first cryptocurrency reached the maximum for 20 months.
- According to experts, the country’s residents are investing in bitcoin amid record high inflation.
Demand for bitcoin in Argentina reached a maximum for 20 months. This is reported by Bloomberg with reference to data from the local crypto exchange Lemon.
According to the data provided, Argentines continue to invest in bitcoin amid rising inflation. The last time such an inflow of funds into cryptocurrency was observed in 2022.
Previously, residents of Argentina bought the American dollar because of the depreciation of the national currency. However, the exchange of pesos for dollars lost its appeal due to the unfavorable exchange rate.
The source claims that the exchange rate of the peso against the dollar has strengthened by 10% over the past two months. Meanwhile, bitcoin has risen by almost 60% over a similar time period, making it a more attractive investment.
According to local crypto exchange Lemon, more than 35,000 bitcoin transactions were recorded in just one week. That’s twice as many as in March 2023. Other trading platforms Ripio and Belo also saw high buyer activity.
The amount of bitcoin and Ethereum on Belo grew 10 times in 2024, said the exchange’s CEO Manuel Baudroit. Stablecoin purchases, meanwhile, fell from 70% to 60% as the “bitcoin rally” attracted more investors.
“Users buy bitcoin when they see news of growth. Stablecoins are more pragmatic and mostly used for payments,” said Beaudroit.
According to the non-governmental organization Bitcoin Argentina, the demand for bitcoins in the country has led to an increase in cases of cryptocurrency fraud. In February, their number increased fivefold.
“The desire of Argentines to live to the end of the month and not lose their savings makes them make hasty decisions. They don’t assess the risks and become easy prey,” said Gabriela Battiato, head of Bitcoin Argentina’s legal department.
The country defaulted on its sovereign debt in May 2020. About 40% of the population of Argentina is below the poverty line, according to Bloomberg.
Recall, in November 2023, the supporter of cryptocurrencies Javier Miley won the presidential elections in Argentina. In December, a decree was issued to restart the economy, which allowed transactions with crypto-assets.
On February 12, 2024, the bitcoin exchange rate showed significant growth against the Argentine peso and updated the ATN. The price of the asset rose above 40 million ARS, which is a new all-time high.
