Bitcoin as a financial alternative to inflation in Argentina and Venezuela

For the month of February, analysts from the Venezuelan Observatory of Finance (OVF) and Studies of Orlando J. Ferreres & Associates (IPC-OJF) of Argentina provided data that confirms the level of inflation reached by both Venezuela and Argentina in the second month of the year.

According to published information, Argentina was above Venezuela with a difference of approximately 2.7%, since the former registered an increase in its inflation of 4.0% while the latter 1.7%.

In addition to the notable variation between countries, one of the marked differences is also the areas in which prices (mostly) increased, in the case of Argentina, and in which they decreased, in the case of Venezuela.

Although the Venezuelan territory was marked by the drop in food prices, goods and services, alcoholic beverages, etc; which helped the country to lower its position in the inflation ranking in LATAM, it also had its rises in sectors such as services of 10% and in communication of 16.7%.

For its part, the South American country had rises in the prices of communication and transport of 6.3%, entertainment of 4.1% and food and beverages of 5.5%.

Although the data shows it, in the month of February, Argentina exceeds the levels of inflation to which Venezuelan society is subjected in its territory, even so, Venezuela remains well above the year-on-year statistics since, while Argentina has had 51% year-on-year inflation , the level of Venezuela is 266%

These constant fluctuations in both Latin American regions have made their citizens opt for new economic and financial alternatives that allow them, as far as possible, to have economic stability.

Many media and analysts have shown over time the adoption that both Argentina and Venezuela have had with the cryptocurrencies, mostly with bitcoin. To such an extent that these two countries are among the main bitcoin markets in LATAM.

Companies and even society in general, prefer to convert their fiduciary money into digital assets in order to protect themselves from devaluations of both the Argentine peso and the Venezuelan bolívar and even the dollar.

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