Around the world countries are collapsing under the weight of debt caused by the fiat monetary system. Inflation is now raging, and one of the only ways to protect wealth is to purchase bitcoin.
The fiat monetary system, espoused by Keynesian economists, is a debt-based system where governments print ever more currency leading to ever higher piles of debt. This is the system we live within, and it is vastly unfair to the average citizen and wreaks havoc on the world’s poorer countries.
Argentina is anything but poor if you take into account the country’s resources, but decades of bad government has seen the country plunge further and further into debt.
Inflation was recorded at 58% in April, and could go as high as 70% this year. Confidence in the peso, the local currency, is at an all-time low, and therefore Argentinians are electing to off-set their losses by buying bitcoin.
It’s still early days, but according to an April report from Americas Market Intelligence, around 12% of Argentinians are now holding crypto – around double that of Mexico and Brazil.
The Argentine central bank repeatedly warns people about investing in cryptocurrencies because of their huge volatility, but doesn’t appear to have an answer to 58% inflation, which is arguably far worse than what an investor can be expected to lose through holding bitcoin.
Turkish inflation is also incredibly high. April’s figure of nearly 70% may well climb past 100% by the year end. President Erdogan recently had a meeting with Nayib Bukele, the president of El Salvador, and this may have prompted him to give cryptocurrencies another thought, after being extremely negative on them in the past.
New tax rules are being proposed on crypto exchanges and crypto companies in general. Also, safer ways are being explored to store cryptocurrencies. All this means that Turkey must be seriously considering crypto as a possible way to leverage it in order to help citizens avoid the ravages of inflation.
According to crypto payments service provider Triplea, nearly 3% of Turkey’s population currently own cryptocurrencies. With the Turkish lira debasing at a rate of about 50% in the last 12 months, and annual inflation scorching to a 20-year-high, it can be imagined that many more citizens will be looking at bitcoin to store their wealth.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/05/impoverished-investors-turn-to-bitcoin