- Bitcoin demand in Argentina reached its highest level in nearly two years due to the ongoing devaluation of the Argentine peso.
- Crypto exchanges including Lemon Cash report a doubling of weekly Bitcoin purchases compared to 2023 averages.
- Argentines are seeking to preserve their savings as the peso’s value against the US dollar plummets.
As the Argentine peso continues its decline, Argentinian citizens have increasingly turned to Bitcoin as a means to protect their wealth. This has led to a surge in Bitcoin demand within the country, reaching its highest level in almost two years.
In particular, data gathered from the crypto exchange Lemon Cash has revealed that almost 35,000 users in Argentina bought BTC in the week ending March 10th, which is double what the weekly average was compared to the same period in 2023.
There were similar peaks in previous months, but this period showed a clear all-time high for the number of BTC purchases per week, Bloomberg reports.
Driving Forces of Demand
The primary factor behind the increased interest in Bitcoin is the rapid devaluation of the Argentine peso. In the past year, its value against the US dollar has plummeted, exacerbating economic uncertainty for Argentines. Bitcoin is seen as a potential hedge against the volatility of their national currency.
Other exchanges and platforms in Argentina, including Ripio and Belo, have also reported a significant increase in Bitcoin purchases on their own respective platforms. This seems to corroborate the activity on Lemon Cash, which saw a doubling of weekly Bitcoin purchases.
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According to the CEO of the digital wallet Belo, Manuel Beaudroi, there has been a notable a shift away from stablecoins towards Bitcoin. While stablecoins previously accounted for 70% of purchases, their share has decreased to 60%, highlighting Argentines’ growing appetite for Bitcoin amidst its price rally.
In a statement, Beaudroi said, “The user decides to buy Bitcoin when they see the news that the currency is going up, while stablecoin is more pragmatic and many times used for transactional purposes, as a vehicle to make payments abroad.”
In any case, the surge in Bitcoin demand within Argentina underscores the cryptocurrency’s potential role as a store of value in countries facing economic instability. It also demonstrates the increasing global adoption of cryptocurrencies as individuals seek alternatives to traditional financial systems.
