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"Bitcoin's price has recently surged to around $34,000, but it still needs more than a 100% increase to reach its all-time high of $69,000 in November 2021. However, it's worth noting that in some countries, the trading pairs of their fiat currencies against Bitcoin have reached all-time highs.
Inflation Leads to Continuous Devaluation of Fiat Currencies
Between October 23rd and 24th, the price of one Bitcoin in Argentine Pesos, Nigerian Naira, Turkish Lira, Laotian Kip, and Egyptian Pound reached all-time highs. However, this phenomenon is not solely due to the rise in Bitcoin's price but rather because these countries' currencies have significantly depreciated due to high inflation, as pointed out by cryptocurrency analyst @milesdeutscher in a tweet.
Increased Adoption of Cryptocurrency Due to High Inflation
According to data from the International Monetary Fund, Argentina has an inflation rate as high as 122%, ranking third in the world. Additionally, Turkey and Nigeria have inflation rates ranking sixth and fifteenth at 51% and 25%, respectively. It's worth mentioning that there are indications that these high-inflation countries are actively embracing cryptocurrencies.
Highlights of Inflation Rates in Different Countries:
**Nigeria:**
According to a recent research report by the blockchain infrastructure development company Consensys, 99% of Nigerian respondents stated that they are aware of cryptocurrencies, 70% of respondents have a clear understanding of basic blockchain technology concepts. Furthermore, 90% of respondents expect to invest in cryptocurrencies in the next 12 months, and 65% of respondents believe that cryptocurrencies are an essential means to combat financial recession and severe inflation.
**Turkey:**
Another report published by Chainalysis in October indicated that Turkey ranks 12th in the global cryptocurrency adoption index, and the cryptocurrency trading volume in Turkey ranks fourth globally. In recent years, Turkey has been working on launching a Central Bank Digital Currency (CBDC) to digitize the Turkish Lira.
**Argentina:**
With a triple-digit inflation rate, the daily lives of Argentinians have become increasingly challenging. The presidential elections in November are critical to the country's financial future. The presidential candidate Javier Milei has advocated for Bitcoin as a solution to the nation's currency crisis. The other presidential candidate, Massa, has promised to launch a CBDC if elected to tackle Argentina's inflation crisis. In the primary election held in August, Javier Milei secured the first position with a vote share of 31.57%, significantly improving his chances of winning the presidential race. If he wins, Argentina's policies toward embracing cryptocurrencies might become more favorable.
Please note that this is a summarized translation of the provided text." |
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Post time 31-10-2023 23:13:04
