Argentinian Users increase on AOFEX Due to Galloping Inflation
According to a report from AOFEX recently, 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 cryptocurrency to maintain the value of their assets.
The Argentine Central Bank tightened the policy of local legal currency — peso for three times this March, but situations are not turning any better at all. The inflation rate of Argentina peso raised 55% till the end of March, and is not improving this April. Argentina peso is the legal currency with worst performance this year, which lead to economic recession with out-of-control inflation. Stating the obvious, 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, 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 to fight against inflation.
It is not the first time Argentinians buy cryptocurrencies to deal with inflation. The inflation rate has been equal or above 14% and higher. Argentinians can buy small amount of Bitcoins in convenient stores since 2014.
Bitcoin became the efficient method of dealing with inflation in Argentina. If Argentina support and promote cryptocurrency even more, the needs for US dollars are likely to drop down, furthermore, it influences positively such as steady the local market, and attract 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 immanent 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 rapidly developed. You could pay cryptocurrencies with over 260 Merchants, you could even deposit SUBE (Public transportation card) by Bitcoin.
In short, such depreciation in Argentinian pesos stimulates or enhances the use of Bitcoins.
Unsurprisingly, purchasers of Bitcoins have been growing 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 can not only avoid loss caused by inflation, but also generating profit.
While Argentinians select digital asset exchange platforms, security always coms 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 extremely positive changes 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 invest in Bitcoins on AOFEX has positive influences on rise of bitcoin, which is also a perfect time for investors to start trading in this market.