Countries all across the world are crumbling under the burden of debt incurred as a result of the paper money system. Inflation is common right now, and buying bitcoin is one of the only methods to protect your assets.
Bitcoin and other cryptos are not after by the government in any way. No matter how bad the economic condition of a country gets, it won’t cause the price of Bitcoin or any crypto to reduce. So having your assets in form of Bitcoin means inflation won’t affect it.
The Keynesian fiat money system is a debt-based system in which governments issue ever more currency, resulting in ever-increasing debt heaps. This is the system we live in, and it is incredibly unjust to the common person and causes disaster in the world’s weaker nations.
When you consider the country’s resources, Argentina is far from impoverished, but decades of disastrous government have seen the country spiral deeper and deeper into debt.
Inflation was 58 percent in April, and it is expected to reach 70 percent this year. Because confidence in the peso, the country’s currency, is at an all-time low, Argentinians are opting to hedge their bets by purchasing bitcoin.
Although it’s still early, according to an April research from Americas Market Intelligence, roughly 12% of Argentinians now own cryptocurrency, which is nearly double that of Mexico and Brazil.
The Argentine central bank has frequently warned people against investing in cryptocurrencies due to their high volatility, but it doesn’t appear to have a solution for 58 percent inflation, which is probably far worse than what a bitcoin investor might expect to lose.
Inflation in Turkey is likewise extremely high. By the end of the year, the roughly 70% percentage from April could easily surpass 100%. President Erdogan recently met with El Salvador’s president, Nayib Bukele, and this may have inspired him to reconsider his stance on cryptocurrencies, which he previously held in high regard.
New tax laws for crypto exchanges and crypto firms, in general, are being proposed. Additionally, safer methods of storing cryptocurrencies are being investigated. All of these suggest that Turkey should carefully investigate crypto as a tool for assisting citizens in avoiding the effects of inflation.
According to Triple-A, a crypto payments service provider, roughly 3% of Turkey’s population owns cryptocurrencies. With the Turkish lira depreciating at a rate of over 50% in the previous year and annual inflation reaching a 20-year high, it’s easy to see why more people may turn to bitcoin to store their cash.
This could bring an end to paper money usage in some countries because more cryptos are launched in the Blockchain network. People are also gaining from the Cryptocurrency industry in so many ways like airdrops, mining, and NFT.
Things will only get better for these investors who are taking advantage of Bitcoin and other cryptocurrencies. Even with their rate of volatility, these digital currencies have proven to be the best form of investment for many years.