The world is going through a situation that breaks with the normal paradigms that we had until now. Countries that have had a long economic stability are registering historic rates of inflation, while those with economies in crisis have worsened.
The United States is one of the places that causes the most concern, given that its economy affects the international market due to its magnitude and its year-on-year inflation has reached 7.9% in the last month. This means an increase of 364% in just one year, since in February 2021 it barely had a year-on-year inflation rate of 1.7%.
The scenario presented by the United States is somewhat similar to what is seen in the rest of the world. Different countries in Europe, which were also recognized for their economic stability, are registering an increase in inflation. Spain, for example, is among the places with the highest price increase with a year-on-year rate of 6.4% in the last month.
This scenario has caused Spaniards and people from other parts of the world to seek refuge in assets that appreciate in value over time, such as bitcoin (BTC). It is an attempt to safeguard your savings and increase them to overcome the impact of inflation in your daily life, as it has also worked historically with gold in situations of financial instability.
That is why different analysts foresee a global economic crisis that could actually benefit bitcoin as an asset. This has been said by the analyst Zoltan Pozsar of the renowned Swiss financial Credit Suisse and also flix1, who believes that it will be unleashed in 2023.
Inflation in Latin America is still worse than Europe and the United States by far
This situation that the first world countries are going through is something that is not new for Latin America. A place where inflation has been experienced quite naturally for years and people are used to buying hard currency to protect the value of their savings.
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The context of generalized inflation in the world makes people from developed countries better understand what Latin Americans have been experiencing for a long time. Although the situation in the region remains incomparable with the rest of the planet.
Despite the increase in inflation that Europe and the United States have had, they are still far from resembling Latin America. This is reflected in its year-on-year data on price increases that reach two or more figures, which shows an important difference with the most developed countries and positions some of its nations among the most affected in the world.
While the United States has registered a year-on-year inflation of 7.9%, Argentina only in the last month has shown an increase of 4.7%. This implies for the country a price increase index of 52.3% year-on-year from February 2021 to February 2022, which is the date of the last report published in the INDEC.
An even more serious situation is experienced by Venezuela, which presents a year-on-year inflation rate of 340%. This figure maintains it as the country in Latin America with the highest price increase, despite the fact that it has managed to lower the monthly increase in recent months.
Argentina and Venezuela are among the countries with the highest year-on-year inflation in the world. In fact, according to the world ranking of Trading Economics they are in the top 8, along with nations from Asia and Africa. That is precisely why they have become two of the places in the world with the highest use of bitcoin and cryptocurrencies as an investment.