The Highest Bitcoin Purchases in Argentina in 20 Months

As Bitcoin skyrockets, Argentinians are diversifying their savings, exploring investment options as a hedge against inflation after years of relying on the dollar.Faced with outstanding inflation of up to 276% in Argentina, individuals are gradually turning towards Bitcoin as a means of protecting their assets instead of the traditional option of exchanging pesos for dollars. The change marks a break with a long-standing tradition that has made Argentina a leading destination for dollarization amid economic uncertainty.

Bitcoin purchases in Argentina hit a 20-month high at Lemon, a popular local cryptocurrency trading platform. The increase reflects a growing trend of Argentines seeking financial stability amid an economic downturn and one of the highest inflation rates in the world.

Traditionally, converting pesos to dollars was considered a way to prevent economic fluctuations, but now this method is no longer as popular as before. This change coincides with a 10% increase in the commonly used exchange rate against the dollar. In contrast, Bitcoin has gained nearly 60% against the greenback over the same time period.

Lemon exchange recorded a significant increase in customer transactions, with nearly 35,000 Bitcoin purchases made in the week ending March 10, double the weekly average in the previous year. Similar trends were observed at other major exchanges in Argentina, such as Ripio and Belo.