Bitcoin is trading at a premium in several countries facing extreme currency devaluation and political uncertainty, including Nigeria and Turkey.
As of Friday morning, the leading cryptocurrency is hitting new all-time highs (ATH) in Nigeria, Turkey, and Argentina as residents turn to the safe haven asset amid soaring inflation rates.
Bitcoin Hits New High in Multiple Countries
Bitcoin surged to 28.4 million Nigerian naira (NGN), 12.4 million Argentine pesos (ARS), and 979,000 Turkish lira (TRY) as the fiat currencies of these countries continue to free-fall.
According to data from the International Monetary Fund (IMF), Argentina is currently facing triple-digit inflation, with the Argentine peso ranking fourth in the list of currencies with the highest annual inflation rates.
The Turkish lira and the Nigerian naira ranked 6th and 15th, with inflation rates spiking 25% and 52% over the past year. The massive decline in the purchasing power of these currencies has significantly increased the demand for bitcoin, which is historically considered to be a hedge against inflation.
Bitcoin Adoption Grows in Inflation-Stricken Countries
Crypto adoption rates in Nigeria, Turkey, and Argentina have continued to grow despite restrictions on the digital asset market in these jurisdictions. A recent Chainalysis report revealed that Nigeria is the second most active country in crypto trading.
Despite a ban placed on crypto trading by the Nigerian government in 2021, the country has continued to record large trading volumes. Crypto transactions in the African nation have risen 9% year-on-year to reach 56.7 billion as of June 2023.
The Nigerian government is also softening its stance on cryptocurrencies as digital asset use becomes more prominent. In December 2022, the government revealed plans to pass a bill legalizing Bitcoin.
Turkey and Argentina are also not left out in the adoption trend, with both countries ranking 12th and 15th respectively on Chainalysis’ list. Nearly 10% of the Turkish populace is turning to Bitcoin to protect their funds from the ravaging effects of inflation on the lira.
Bitcoin has become a major topic of discussion in Argentina, with politicians leveraging the digital asset’s popularity to gain support from voters ahead of the country’s presidential election.
Bitcoin recorded an ATH against the Argentine peso in August after the Bitcoin-supportive presidential candidate, Javier Milei, won the presidential primary elections.
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