Got Bitcoin? Argentina’s Inflation Rate is Now Over 100%

If you’re looking to invest your Bitcoin, Argentina may be a prime candidate. The country’s inflation rate has now surpassed 100%, making it an attractive option for those seeking to hedge against inflation. With Bitcoin’s decentralized nature and limited supply, it could provide a viable alternative to the unstable Argentine peso. Keep an eye on the market as opportunities for investments in Argentina arise.

Argentina’s Inflation Rate Breaches 100% Mark in February

Argentina’s annual inflation rate reached a 30-year high in February, surpassing 100% since the nation’s hyperinflationary period in 1991. The country’s government data, released on Tuesday, showed a Consumer Price Index (CPI) rise of 6.6% in just one month, alongside a year-to-date increase of 13.1%. This rapid debasement of the nation’s currency has a real-time impact on its citizens, who are struggling to afford even the basic necessities of life, as witnessed by 74-year-old Irene Devita.

Despite the devaluation of the Argentine Peso, Bitcoin has appreciated against the national currency by 20% over the past year, although it posted a 34% decrease against US dollars during the same period. This increase in cryptocurrency value is due to the widespread adoption of crypto in Argentina, ranking at number 13 in the Chainalysis 2022 crypto adoption index, despite the nation’s central bank clamping down on crypto-related services. Countries such as Nigeria and Turkey, which also face problematic inflation, led Argentina in the same index, with high cryptocurrency adoption rates.

For Bitcoin bulls, the fixed supply of Bitcoin makes it an excellent long-term inflation hedge in countries grappling with constantly rising prices. Central banks governing relatively stable currencies like the Bank of Canada, on the other hand, argue that Bitcoin is not an inflation hedge due to its relative volatility.

Bitcoin reacted strongly to central bank policy recently, rising by 30% in just one week after the Federal Reserve injected $300 billion in loans to qualified banks. Therefore, it can be observed that Bitcoin’s value is directly influenced by central bank policies and actions.

In conclusion, while inflation continues to ravage the Argentine economy, with its citizens feeling the brunt of it, Bitcoin continues to be a viable investment option due to the fluctuation of fiat currencies, making it a potential hedge against inflation.

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