Cryptocurrencies Flourish in Economies with Dysfunctional Fiat Currencies

Bitcoin ATMs

As cryptocurrencies get labeled as volatile and risky investments, Reuters notes that there are fiat currencies exhibiting higher volatility than that of crypto. Even as the Turkish Lira and others behave wildly, cryptocurrencies seem to be trading in a range. It seems not only Turkey is in financial tailspin. In Argentina, the peso is down to over 50% of the previous value against the USD.

Reuters reports that the country is looking to cryptocurrency to save the economy. Last year, Argentina debuted the first cryptocurrency ATM that would dispense Bitcoin in a shopping center in Buenos Aires. Furthermore, the publication details that Athena Bitcoin is not the only crypto firm operating in the country. Odyssey Group, another cryptocurrency company, is looking to enter the Argentinean market by installing several Bitcoin ATMs. The Daily Star reports the company will install 150 ATMs all across Argentina by the end of this year.

Argentina operations manager for Athena Bitcoin, Dante Galeazzi observes Bitcoin ATMs are enjoying a rising popularity in the country. As per Galeazzi, this could be due to the strengthening of the US dollar alongside devaluation of the peso. As a result, many more people are migrating to Bitcoin which exhibits far less volatility in its pricing.

Increasing Demand

The increasing demand for Bitcoin created the market for Bitcoin ATMs. “With currency devaluations, we have seen a spike in bitcoin transactions. We see that as a safeguard to (the peso’s) value, as well as an opportunity to invest in the market,” Galeazzi told Reuters.

Furthermore, the companies assure that they will later add more cryptocurrencies to their list available in the ATMs. However, they will solely focus on Bitcoin for now given the demand for the coin. As per Galeazzi, Athena Bitcoin will add Litecoin, Ethereum and Bitcoin Cash after Bitcoin as the coins are gaining in demand against the peso.

Transactions Preferred in Crypto?

The story of cryptocurrencies boosting economies is not unique to Argentina. The CryptoCoin reporter reveals that Venezuelans prefer cryptocurrencies to the dysfunctional bolivar. As per the publication, there is a high uptake of crypto as people scramble to get means of securing wealth.

In part, the publication reads:

“However, people’s faith in the currency (bolivar) is at rock bottom. For this reason, Venezuelans started converting their assets into commodities to salvage the little they had remaining. But there are just not enough commodities to buy. As a result, many Venezuelans began converting their assets into digital currency.”

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