Bitcoin Price Soars in Countries with High Inflation, Becomes Reliable Store of Value
A recent analysis by crypto analyst and DeFi enthusiast Miles Deutscher has revealed that the price of Bitcoin has reached new all-time highs in several countries experiencing high inflationary pressures. According to Deutscher, countries such as Turkey, Argentina, and Nigeria have seen significant increases in the price of Bitcoin.
Deutscher shared charts on his social media account, displaying the price of Bitcoin against the respective fiat currencies of these countries. The data showed that in Argentina, one Bitcoin was equivalent to 12,172,353.50 ARS, in Turkey, it was worth 979,017.26 TRY, and in Nigeria, it was trading at 28,443,229.20 NGN.
These countries are currently facing high inflation rates, resulting in the devaluation of their fiat currencies. Data from the International Monetary Fund (IMF) reveals that Argentina has an annual inflation rate of 136.7%, Turkey at 64%, and Nigeria at 30.6%. Others like Zimbabwe and Venezuela have even higher inflation rates of 396.2% and 250% respectively.
Despite the steady devaluation of their currencies, Bitcoin has emerged as a reliable store of value in these countries. Many individuals in Nigeria and Argentina, in particular, have been embracing cryptocurrencies as a means of preserving their wealth.
In addition to the inflationary pressures, the price of Bitcoin has also been gaining dominance in the overall crypto market. Throughout October, Bitcoin’s dominance has increased from 49.78% to 54.04%. This growth can be attributed to the potential acceptance of Bitcoin ETFs and anticipation surrounding the upcoming Bitcoin halving event in 2024.
Although the price of Bitcoin currently sits at $34,156 with a slight loss in the last 24 hours, it has still gained 16.62% on the weekly chart. This indicates that despite short-term fluctuations, the bullish momentum of Bitcoin remains intact.
Overall, the surge in Bitcoin prices in countries with high inflation highlights its role as a reliable store of value. As individuals face the devaluation of their fiat currencies, Bitcoin offers an alternative investment option that can help hedge against inflation and preserve wealth.
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