Physical Address

304 North Cardinal St.
Dorchester Center, MA 02124

The cryptocurrency fever does not stop in the region, why is Argentina a big player?


Bitcoin, the world’s leading cryptocurrency, continues to advance and perfect its ecosystem. Thus, it is positioned as the preferred token in Latin America since it represents 53% of the regional average portfolio. Although its price suffered volatility throughout 2023, it managed to close the year up 150%.

Argentina position number is found fifteen regarding crypto adoption worldwide. And, in the region, it occupies second place, only behind Brazil, with its capital, Buenos Aires, as one of the cities with the highest concentration of users.

The data comes from the report prepared by Bitso, a leading crypto financial services company in Latam, which offers a broad overview of the ecosystem at a regional and local level. And, as you rightly mention Julian Colombogeneral director for Argentina, “Portfolios and trends change according to the idiosyncrasies of the country”.

For example, cryptocurrency trading by women increased 2% in the second half of 2023, compared to the first half of the year and represent the 27% of users. In this context, the countries that register the greatest growth are Argentina (+4%) and Brazil (+1%), when comparing second half of 2023 vs. first. However, Colombia remains in the lead, with a female presence of 33% in the crypto market.

A general trend in the region is the search for “wealth through cryptocurrencies”, with its caveats depending on the country, the search for juicy returns is what motivates users to participate in this market.

Crypto dollar: Argentina has no rival

In the case of Argentina, the economic situation and the constant search for coverage in the face of a ravenous inflation which destroys purchasing power at great speed, has made the inhabitants a more qualified population at the investment level, “for pure survival“, maintains Colombo.

The context resulted in the fact that, at the local level, the crypto dollar represents 60% of the total cryptocurrency purchases made in Argentina, that is double the regional average. In percentage of portfolio, at the end of 2023, Argentina had 26% in stablecoinswhich exposes the effect of the macro in the crypto world.

Bitso.jpg

As for the favorite stablecoins of Argentines, the leader is USDC (40%), followed by USDT (twenty%). Thus, Argentina is the only country in the region where more than half of the purchases are in crypto dollars, surpassing Bitcoin, by contributing 60% and 13%, respectively, “of the total purchases”.

Likewise, the data analyzed by Bitso on the exchange’s more than 8 million users suggests that large long-term holders of cryptocurrencies remain, demonstrating widespread confidence in market recoverydriven by expectations of a new and long-awaited “crypto summer.”

In summary, the economic situation, marked by rampant inflation, invites citizens to actively look for ways to preserve the value of their money. While the persistence of large crypto holders suggests sustained confidence in market recovery, despite previous difficulties in the industry. 2024 can be a great year to enter the ecosystem.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *