In Argentina, the popularity of cryptocurrencies has increased amidst inflation and the collapse of the peso, making them a less risky option for many Argentines. Despite recent difficulties in the cryptocurrency market, many Argentines see them as a safe haven in a country where rising inflation and economic crisis have hit the national currency, the peso, and people's bank accounts.
More and more people are interested in integrating into the world of cryptos, especially the humble ones like the well-known case in that country of the worker of a pizzeria called Romina Sejas, who a few years ago, helped prepare the dough of the pizza at a friend's house, who suggested to her to "ferment the dough in your mine". "She didn't understand what her friend was talking about, she thought mining was getting into a cave with a pick, shovel, and helmet. Instead, her friend showed her a room full of shelves with buzzing computers, known as miners in technological jargon. These computers work non-stop, verifying cryptocurrency transactions and rewarding their owners in digital currency. They consume so much energy that the room was a functional oven.
Impressed by her friend's story, who had increased her monthly salary by almost 40% thanks to cryptocurrencies, Romina Sejas became a believer in cryptocurrency and joined a wave of Argentines who turn to digital currencies as a way to earn more, increase their savings and even do business.
One of the reasons why cryptocurrencies are so popular in Argentina is due to inflation. The Central Bank of Argentina estimates that the inflation rate in 2022 was 43%. This means that a product or service that costs 100 pesos today could cost 143 pesos in a year. This inflation rate is extremely high and makes the official currency of Argentina increasingly worthless. As a result, many Argentines are looking for ways to protect their savings from devaluation.
In addition to inflation, the economic crisis in Argentina has also contributed to the increase in the popularity of cryptocurrencies. The country has experienced a series of economic crises in recent decades, including a recession in 2018 and a default in 2019. As a result, many Argentines have been forced to turn to cryptos and assume other stronger Fiat currencies to overcome the overwhelming crisis.
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