As Argentina’s inflation rate skyrockets to its highest level since 1992, people are increasingly turning to Bitcoin as an alternative.
Inflation in Argentina Surpasses 54 Percent
Argentina’s central bank already tightened monetary policy three times in the last month, and inflation is still accelerating at a rate of nearly 55 percent. Bloomberg notes:
The inflation rate rose to almost 55 percent in March, with consumer prices rising 4.7 percent in the month, exceeding all of the forecasts in a Bloomberg survey of analysts.
The unstable economic environment is driving many traders and investors to focus on Bitcoin. Thus, the volumes of Bitcoin traded in Argentina are reaching all-time highs, the latest data from LocalBitcoins/coin.dance shows.
Argentina’s economy suffers from chronic inflation to such an extent that no monetary measure seems to work. According to the Financial Times,
Argentina is trapped in a vicious circle. Demand of just a few million dollars in an illiquid market can weaken the peso, as has been…