A recent survey by Paxful reveals that 73% of those surveyed in Argentina consider that bitcoin and cryptocurrencies are the most effective savings mechanism.
Paxful is a marketplace that allows P2P bitcoin trading in Argentina, among others, and two weeks ago there was the absolute peak of trading on the platform in the South American country.
The fact is that the country has been going through a serious financial crisis for some time, with a strong and continuous devaluation of the local currency, the Argentine peso.
Until 2013, the annual rate of inflation remained fairly constant at around 10%, but from 2014 it increased first to 25%, then 40%, and finally peaked at over 55% last year. Now it has dropped to around 40%, but it is still very high and may not necessarily grow back.
In other words, savings in pesos lost 40% of their purchasing power in one year, 64% in two years and even more than 90% in five years.
It is not surprising, therefore, that Argentines look for other currencies to preserve the purchasing power of their savings.
The Paxful survey on Bitcoin in Argentina
As revealed by the survey, conducted by Cripto 247 on behalf of Paxful in July 2020 on a sample of 1,113 respondents, Argentines are more willing to venture into new forms of investment, precisely because of the need to protect the value of their financial savings.
73.4% of participants, or almost three out of four, even believe that, in the current economic scenario, cryptocurrencies are the most effective way to save and protect their funds.
Of a total of 1,113 respondents, the 69.5% said they had already invested in cryptocurrencies at least once, and 42.7% said that they had done so as a refuge from the depreciation of the local currency due to inflation.
Even more than two out of three, that is, 67.8%, stated that they consider investments in cryptocurrencies very safe.
Finally, 30.5% of those surveyed stated that they had not yet invested in digital currencies, mainly due to ignorance of its operation and use (24.2%), lack of funds to invest (12.8%) or fear of new ones. unknown currency (7.7%).
Paxful's Latin America Manager, Magdiela rivas, said:
“During this year we have observed a significant increase in the operations carried out by Argentine users on our platform, especially since the pandemic began, registering an increase of 37.5% in volume compared to previous periods.
We know that the crypto industry offers many opportunities that people are not yet aware of. At Paxful we work to educate citizens and show them that there is a new alternative to invest their money, which gives them financial freedom ”.