The price of bitcoin (btc) has reached new all-time highs against some of the world’s most inflationary fiat currencies.
During the 30 hours from October 23 to 24, the cost of purchasing one bitcoin reached all-time highs when using the Argentine peso, Nigerian naira, Turkish lira, Lao kip, and Egyptian pound.
bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”noopener noreferrer nofollow” target=”_blank”>#bitcoin has just reached an all-time high in Argentina, Türkiye and Nigeria. pic.twitter.com/sKRNUaBMX8
– Miles Deutscher (@milesdeutscher) October 26, 2023
However, it should be noted that the result is due to the current devaluation of currencies, exacerbated by bitcoin‘s recent 16% price increase.
The naira and lira fell to their lowest points against the US dollar on October 24 and 25, while the peso is only 0.85% below its all-time low (against the US dollar).
According According to the International Monetary Fund (IMF), the Venezuelan bolivar currently has the highest annual inflation rate: 360%, followed by the Zimbabwe dollar (314%), the Sudanese pound (256%) and the Argentine oesi (122% ).
The Turkish lira and Nigerian naira ranked sixth and 15th with annual inflation rates of 51% and 25% respectively, IMF data shows.
Cryptocurrency watchers have long viewed digital assets, such as bitcoin and stablecoins, as a hedge against soaring inflation, and recent figures could reinforce that narrative.
Nigeria, Turkey and Argentina boast the second, twelfth and fifteenth highest cryptocurrency adoption rates worldwide, according to a September 12 report from Chainalysis.
With inflation of 99% in #ArgentinaIt is 99% likely that the citizens of that beautiful country will benefit from bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”noopener noreferrer nofollow” target=”_blank”>#bitcoin.
—Michael Saylor (@saylor) February 15, 2023
However, the governments of these countries have not always been on board with the cryptocurrency industry.
Nigeria is finally becoming more welcoming to cryptocurrencies after its central bank banned local banks from providing services to cryptocurrency exchanges in February 2021.
Progress was made in December 2022, when Nigeria announced its intention to pass a bill recognizing cryptocurrencies as “capital for investment,” citing the need to keep up with “global practices” as one of the main reasons behind of his change of posture.
And while Turkey is home to some of the most cryptocurrency-curious people, its central bank banned cryptocurrency payments for goods and services in April 2021. It has also been working on a central bank digital currency (CBDC) to digitize the Turkish lira in recent times. years.
bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”noopener noreferrer nofollow” target=”_blank”>#bitcoin fix this
I am back in my beautiful country, Türkiye, after 6 months. Surprised to see that the same products already cost 3 to 4 times more. Rent, food, public transportation and other costs regularly skyrocket. The devastation of high inflation is real and alarming. pic.twitter.com/X4N4Axuh1n– Gülben Gözü (@gulbengozu) August 28, 2023
Meanwhile, Argentina’s inflation crisis could be influenced by the outcome of November’s presidential election, in which presidential candidate Javier Milei will face rival Sergi Massa in a final runoff on November 19.
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Massa, who currently serves as the country’s economy minister, wants Argentina to launch a CBDC “as soon as possible” to “resolve” the country’s prolonged inflation crisis.
Argentina’s present provides a glimpse into the future of the United States, where the central bank raised interest rates by 15 percentage points to 133% on October 12. #inflation At 138% and with budget deficits and debt increasing, rate hikes will have no effect on reducing inflation.
—Peter Schiff (@PeterSchiff) October 26, 2023
He has also expressed his intention to keep the US dollar away from Argentines, explaining that Argentines should be “patriotic” and defend the Argentine peso.
Milei, on the other hand, wants the US dollar to be adopted in addition to abolishing Argentina’s central bank.
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