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Cryptocurrency use case in rapidly inflationary environments

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by COINS NEWS 85 Views

Cryptocurrency use case in rapidly inflationary environments

We all know cryptocurrency can bring financial services to people in countries where those are hard to get to, not easy to use or otherwise blocked from the rest of the world finances, but crypto also has a great use case as a literal store of value, much more in environments on rapidly increasing inflation.

In the past 5 years the Turkish Lira has lost 79.63% of its value against the USD, and has seen they're cryptocurrency adoption rate from 2 million user in 2021 to 8 million on 2022.

TRY/USD 5 year chart

While in Argentina, in the same span of 5 years the Argentine peso has lost 91.23% of his value, also in this country people has been historically restricted in the exchange of their currency to a foreign one. And they are one of the fastest growing countries ranking 13th in the crypto adoption index.

ARS/USD 5 year chart

TLDR: Crypto can benefit people from countries which have experience a high inflationary environment, by acting as a store of value, much more in countries that restrict their people's ability to exchange their currency for a foreign one.

submitted by /u/Rogueofoz
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