Crypto Ownership Surges in Countries With High Inflation
According to GWI Research, crypto ownership has surged in countries with high inflation rates, such as Turkey, Argentina, and the Philippines. In Turkey, crypto ownership grew by 27.1% from July-September 2021 to July-September 2022, while Argentina and the Philippines followed with increases of 23.5% and 23.4%, respectively.
These countries share a common feature of having skyrocketing inflation rates, which may have motivated citizens to turn to crypto as a hedge against currency devaluation. In late 2021, Turkish Lira quickly lost 44% of its value against the US dollar. The country’s inflation surpassed 30% in early 2022 and ended the year at 72.31%. Similarly, Argentina's inflation rate was 94.8% in 2022, while the Philippines' inflation sat at 8.1% in December 2022, reflecting a 107% increase from the 3.9% recorded in 2021.
Cryptocurrencies provide an alternative means of storing wealth that is not subject to government manipulation or devaluation. As such, they may become increasingly attractive to citizens in countries with high inflation rates. However, there are also risks associated with investing in cryptocurrencies, such as volatility and security concerns.