In the midst of severe currency devaluation and political uncertainty, Bitcoin has emerged as a safe haven asset in countries such as Nigeria, Turkey, and Argentina. Residents in these nations are turning to the leading cryptocurrency as their local fiat currencies continue to plummet.
All-Time Highs Amidst Soaring Inflation Rates
Bitcoin has reached new all-time highs (ATH) in Nigeria, Turkey, and Argentina. In Nigeria, it surged to 28.4 million Nigerian naira (NGN), in Argentina to 12.4 million Argentine pesos (ARS), and in Turkey to 979,000 Turkish lira (TRY). This spike is a response to the triple-digit inflation in Argentina, with the peso ranking among the world’s most rapidly devaluing currencies. Meanwhile, Turkey and Nigeria are also grappling with inflation rates of 25% and 52% respectively.
Despite regulatory restrictions, crypto adoption is on the rise in these nations. Nigeria, despite a crypto trading ban in 2021, has seen a 9% year-on-year increase in crypto transactions, reaching 56.7 billion as of June 2023. The Nigerian government is also reconsidering its stance, revealing plans to legalize Bitcoin. Turkey and Argentina are following suit, with approximately 10% of the Turkish population turning to Bitcoin to safeguard their funds against inflation.
Bitcoin’s Impact on Politics
In Argentina, Bitcoin’s popularity has seeped into the political landscape. Politicians, including the Bitcoin-supportive presidential candidate Javier Milei, are leveraging the digital asset’s appeal to gain support from voters. Bitcoin reached its ATH against the Argentine peso in August following Milei’s victory in the presidential primary elections.
As these countries grapple with economic challenges, Bitcoin’s role as a hedge against inflation and political instability continues to strengthen, driving its adoption even in the face of regulatory hurdles.