James Bay, Customer Service Director at STICPAY talks about the several economic indicators that are working towards the consolidation of cryptocurrencies this year
With rising inflation hitting the headlines around the world, 2022 could be the year that crypto cements its position in global financial thinking. Bitcoin was specifically developed to be inflation-proof and its adoption is increasing rapidly, especially in countries where inflation is causing the most concern. Brazil, Turkey, and Argentina, currently have the worst inflation rates in the G20 at 10.06%, 36.08% and 50.9% respectively.
In Argentina, it is believed that around two thirds of the country’s crypto holders do so to protect their savings from currency fluctuations and inflation. In January 2021, there were 22.5m addresses recorded as sending or receiving Bitcoin and the number of Argentines who bought Bitcoin in 2021 grew by 300%.
According to the global cryptocurrency adoption index, Argentina is 28th out of 142. In November 2021, Matba Rofex, submitted a proposal to Argentina’s securities regulator to launch Bitcoin futures in Argentine pesos, so Argentina’s love affair with crypto looks set to continue.
Brazil ranks 5th in the global index of cryptocurrency adoption with an estimated 10m+ people in the country holding cryptocurrencies. Interestingly, 40% of people holding crypto in Brazil earn below the country’s minimum wage and Bitcoin is now more freely traded than gold, which could be an indication of where crypto adoption is headed in Brazil.
Turkey has a difficult relationship with cryptocurrencies. The country’s President Erdogan has declared “a war against Bitcoin” and goods and services cannot be paid for with cryptocurrency. However, trading in cryptocurrency is legal and many of the country’s young people are turning to crypto as a way of securing their funds in a time of high volatility for the Turkish Lira.
“The value of cryptocurrencies will continue to fluctuate but overall, the direction of travel is positive. More people are investing in cryptocurrencies and a greater number of organisations and countries are realising their value in today’s society so the future for cryptocurrencies can only be bright.”
