Inflation is the engine that drives the world population towards the adoption of bitcoin (BTC) and other cryptocurrencies. That’s the conclusion of a study by US-based crypto asset exchange Gemini, conducted with the idea of understanding how the planet is approaching digital assets.
Surveying nearly 30,000 people in 20 countries, the team behind Gemini found that populations more impacted by inflation are five times more likely to buy cryptocurrencies in the coming months, than those who live in regions with lower cost of living, as indicated by the report.
The document includes a list of countries in which the territories with the greatest devaluation of their currency are indicated in red, which, therefore, are the same ones with inhabitants more likely to acquire bitcoin or other cryptoactives.
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For example, in Latin American countries such as Mexico and Brazil, whose currency has lost 60% of its value against the dollar, the interest to acquire BTC is above 32%. This intention is much greater in these countries with high devaluation than that expressed by the inhabitants of others, such as Singapore, whose currency has barely lost 8.33% of its value against the dollar in 10 years.
Inflation, a driver for bitcoin adoption in Latin America and Africa
Nearly half (46%) of those surveyed in Latin America and Africa say that Cryptocurrencies, like bitcoin, are a great way to hedge against inflation. However, in regions where the national currency has not seen long-term changes, respondents were much less likely to recognize bitcoin as a safe-haven asset, the report added.
“The majority of crypto owners in almost all regions said that owning crypto assets is a good way to diversify their assets. This is stated by 3 out of 4 people (78% of those surveyed) in Latin America”, adds the Gemini team.
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“Obviously, other parts of the world are much more affected by inflation and lost investment opportunities than we are,” said Patrick Hansen, a member of the European cryptocurrency community commenting on the Gemnini report on Twitter.
In fact, as he warns, Latin America, Africa, Asia and the Middle East are regions more affected by inflation than Europe and the United States.
Another user of the micro message network joined the thread warning that inhabitants of the regions most affected by inflation turn to cryptocurrencies because they can no longer take refuge in the US dollar, nor the euro. “If it could, that could mean that cryptocurrencies would not be an inflation hedge after all,” he added.
As we have reported in CriptoNoticias, inflation in the United States does not stop rising and breaks a 41-year record. In fact, inflation can be cataloged as the new global pandemic.