The latest monthly inflation report in Spain ignited the anger of the population in social networks. Hadn’t they said that the price increase was temporary? How long is this going to continue?, is read on the web. The rate of price increase is now 7.6%, the highest figure in 35 years, causing people to have less and less money and look to savings alternatives such as bitcoin (BTC).
This incessant situation of inflation is worrying because Spain has always been seen as one of the greatest European powers. Even though its economy has never been number one, it has remained among the best places to live. Unlike other countries where salaries are higher and money goes for more, the Spanish have something that is unique and makes people from all over the world want to settle here.
Its climate, its culture, its landscapes, its infrastructure and the priority given to leisure on a daily basis are some of the factors that make the standard of living better in Spain than in other parts of Europe and the world. So much so that it is still among the countries with the highest life expectancy worldwide. And if you don’t trust the studies, look how many older people you meet on a terrace in broad daylight drinking a caña (beer).
Even though the quality of life that distinguishes Spain is something that is now at stake. Everything is getting more and more expensive and indulging is becoming more and more difficult with rising inflation. At this time, the country is positioned among those with the highest inflation in all of Europe. A list in which it is increasingly located higher.
And for now there is no government solution on the table to end this. In fact, rather it is the opposite. It has joined the global trend of saying that the rise in prices is the fault of Russia’s war against Ukraine, as CriptoNoticias has reported.
As in any part of the planet, the government is always looking for excuses to wash its hands of something that it does not solve. something that makes people have to find their own ways to overcome economic problems causing.
This is not from now. It has always happened in history. What happens is that the issue has worsened in recent years. Since 1987 there has not been an inflation as high as that reached in 2022. Something that weighs on the wallet of the inhabitants and has made them go out looking for alternatives for a long time so that their money continues to suffice.
This situation has caused the inhabitants to show their discontent on social networks, where the bitcoiner community of Spain has been noted. Like Mercedes Durán, from Mandrílense, author of the book “How to invest in bitcoin and create a millionaire mind”, who public on Twitter: “Inflation in the United States reaches 7.9%. In Spain at 7.6% and they intend to make you believe that it was Putin’s fault. Rethink everything you have swallowed without chewing during the last 2 years. And buy bitcoin.”
Why do Spaniards use bitcoin against inflation?
In this economic mess that the country is going through, it makes more and more sense bitcoina currency that is issued and used in a decentralized way without government control and works as a shield against inflation.
This is due to the fact that its emission capacity is limited, unlike euros that can be printed more, causing inflation, if the State so decides. Once the cryptocurrency is mined, there will only be 21 million bitcoins maximum on the market, as its code says. And they can be extracted from anywhere in the world by solving mathematical calculations. It’s like the new 21st century tech or nerd mining. Therefore, many say that bitcoin is digital gold.
This anti-inflationary property that cryptocurrency has is added to another key feature that has made the community that uses it in Spain bigger and bigger. And this is due to the high volatility of its price. This is a factor that drives many away, for fear of losing money, while at the same time attracts those who see in BTC an opportunity to increase their savings.
The price of bitcoin has gone from being worth a penny to more than 58,000 euros in just thirteen years since its creation in 2009. This has allowed different people who bought the cryptocurrency to get rich in a short time, which shows that it is undoubtedly worth using bitcoin before euros. However, its value fluctuates every second depending on supply and demand, which puts you at risk of losing money in short periods. Although in the long term it has always managed to revalue itself because demand grows.
This combination of properties that has bitcoin leads us to think of a monetary system that breaks with everything that humanity has used so far. It implies detaching from the traditional system and adapting to a reality that works differently, with its pros and cons. And it is something that has attracted the Spanish, as can be seen in its domestic market.
Currently, Spain is the third country in the world that has the most bitcoin ATMs, after the United States and Canada, according to Coin ATM Radar. And that is just a small example of its adoption in the region, since most of the transactions are carried out from applications on mobile phones. A survey of statist made in December 2021 indicates that 4 million Spaniards use cryptocurrencies, that is, 9% of the population.
This makes Spain is one of the countries with the highest use of bitcoin and this is no accident. Its growing inflation has motivated its inhabitants to try this method of money, either because of their ideals in favor of this technology or as an investment. A practice that looks set to grow if the government doesn’t come up with an economic system that works better.
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