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The top official at Binance Latin America, Maximiliano Hinz, claimed that rising inflation is the primary factor behind the largest crypto exchange’s recent growth in users. The historically strong dollar, which has devalued other fiat currencies from emerging nations, is another significant reason.
In a recent interview with Reuters, Hinz stated that customers from Latin America make up the majority of Binance’s expanding customers. He stated:
“Now that we are seeing inflation ramping up worldwide, we are seeing that more and more people are seeking cryptocurrency, like bitcoin, as a way to protect themselves from inflation.”
Argentina, spiking inflation, and crypto adoption
Argentina was given by Hinz as a representative case. The country is ruled by political chaos, unemployment, and poverty, and the yearly inflation rate has topped 90%. As a result, it is understandable why the majority of Binance’s new users are Argentines. Locals from Brazil and Mexico (where economic problems are also prevalent) come next.
Numerous experts and prominent figures have suggested investing in bitcoin during the current inflationary crisis as a suitable way to protect one’s money during the previous few years. These individuals include Michael Saylor, Jordan Peterson, Barry Sternlicht, Paul Tudor Jones III, and many others from MicroStrategy.
According to various studies, countries where the majority of the population is poor and doesn’t have basic access to financial services saw an increase in the adoption of cryptocurrencies.
The fundamental reason for investing in Bitcoin, according to many, is its deflationary feature as there will only be 21 million units minted. In addition, the production speed decreases every four years or so following an occasion known as the halving. Therefore, according to fundamental economic theory, the USD price of an asset should increase in line with its increased scarcity and steady or rising demand.
BTC has frequently been referred to by Michael Saylor, Executive Chairman of MicroStrategy, as the ideal financial tool during times of massive inflation.
The post Binance Latin America’s executive says that user grows as inflation rises appeared first on Blockchain, Crypto and Stock News.
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