Bitcoin is already well above its all-time high in several countries plagued by hyperinflation.
Bitcoin is booming in Nigeria, Lebanon, Argentina and Turkey. One bitcoin is now worth 12 million Argentine pesos, twice as much as the previous peak in November 2021.
In Turkey, one bitcoin is worth 970,000 pounds, compared to 770,000 pounds at the previous record. It is worth 27 million naira in Nigeria, compared to 26.4 million in 2021. In Lebanon, one BTC is worth 517 million Lebanese pounds, compared to 100 million in 2021.
How is it possible ? The explanation is that the currencies of these countries have depreciated significantly against the dollar since November 2021:
-Lebanese pound: -90%
-Turkish lira: -65%
-Nigerian Naira: -45%
-Argentinian Peso: -71%
And while the bull run seems to be underway, it will be interesting to observe the impact that capital controls will have on the price of bitcoin.
It is indeed likely that the central bank denied local exchanges to use their dollar reserves to buy bitcoins abroad.
Hence the recent proposal by Argentine President Sergio Massa to mine bitcoins using methane that is flared from the country’s oil wells. The goal is for local miners to satisfy the national demand for bitcoins to avoid having to buy them abroad.
Moral of the story, all countries (especially those plagued by hyperinflation) have an interest in creating a bitcoin industry. Especially those who have surplus renewable energy or gas that would otherwise be flared.
It’s no surprise that Nigeria, Argentina, and Turkey are in the 2023 Top 15 for Crypto Adoption of Chainalysis. The three countries are all at the top of their continental region (Latin America, sub-Saharan Africa and South Asia).
Nigeria is even in second position globally, just behind India. A fair blowback for the central bank which tried this year to force Nigerians to use its CBDC…
Turkey is only in twelfth position, but in fourth place in terms of volumes. Only the United States, India and the United Kingdom purchased more cryptocurrencies than Turkey between July 2022 and July 2023.
Argentina is placed in fifteenth position. Stablecoins are particularly on the rise there. The country is the leading country in Latin America in terms of volumes, with an estimated value received of $85 billion.
“About 5 million people [sur 46 millions] use cryptocurrencies »declared the CEO of the Argentinian exchange Lemon Cash. “Many people immediately convert their salary to USDT or USDC.”
Purchases of stablecoins and bitcoins experienced a real surge in mid-April. That is to say at the time when inflation in Argentina crossed the 100% mark for the first time in thirty years. Two million Argentines use Lemon’s Visa card to instantly convert their bitcoins or stablecoins into pesos.
We can bet that halving, ETF and geopolitical tensions will soon propel bitcoin to all-time highs in all four corners of the world.
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