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Increased ownership of cryptocurrencies in Turkey, Argentina and the Philippines: the impact of inflation

Turkey recorded the highest growth rate in cryptocurrency ownership, with a 27.1% increase from July/September 2021 to July/September 2022, according to GWI research. Argentina and the Philippines followed Turkey in the second and third positions, with cryptocurrency ownership increasing by 23.5% and 23.4% respectively, based on GWI research data.

The study includes individuals between the ages of 16 and 64 and analyzes whether they own any type of cryptocurrency.

The graph below illustrates the top 15 countries that experienced the highest increases in cryptocurrency ownership, with the global average increase being 11.9%.

ارتفاع في ملكية التشفير (المصدر: توثيق بيتكوين)

Cryptocurrency Ownership Growth (Source: Documenting Bitcoin)

While Turkey leads the graph, the United Arab Emirates, Vietnam, and Portugal also recorded strong growth.

Is it inflation?

Although the data does not reveal the reason behind the increase in cryptocurrency ownership, the top three countries share a common feature, which is rising inflation.

In late 2021, the Turkish lira rapidly lost 44% of its value against the US dollar. Inflation in the country rose to over 30% in early 2022 and ended the year at 72.31%. These factors pushed Turks to turn to cryptocurrencies, with average daily trading volume reaching $1.8 billion.

Argentina experienced an inflation rate of 94.8% in 2022, the highest since 1991. The devaluation of the Argentine peso may have driven citizens to adopt cryptocurrencies, similar to what happened in Turkey. The country demonstrated its interest in cryptocurrencies when Bitcoin (BTC) became the top app in Argentina within a week of its launch.

The situation is similar in the Philippines, where the country’s inflation rate reached 8.1% in December 2022, reflecting a 107% increase from the 3.9% recorded in 2021.

Based on this information, it can be concluded that high inflation in these countries is driving people to resort to cryptocurrencies as a means to preserve the value of their money and protect their wealth from the depreciation of local currencies.

DISCLAIMER

As per the principles outlined by the Trust Project, Cryptozia remains dedicated to delivering impartial and transparent reporting. This news article is intended to offer precise and punctual information. Nevertheless, it is recommended that readers autonomously corroborate the facts and seek advice from a qualified expert prior to making any decisions reliant on this content.

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