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A new survey conducted by financial services firm Block reveals Bitcoin (BTC) enjoys higher appeal in countries with high inflation levels.
by the Jack Dorsey-led financial services company finds Argentina saw the highest number of respondents who revealed they would purchase Bitcoin as a hedge against inflation.
Argentina is followed by Nigeria and India, respectively.
“If we look at the share of people who say that ‘protection against inflation’ is a good reason to buy Bitcoin, we see that it is strongly correlated with inflation rates by country, with Argentina leading the pack.”
As of April, Argentina had an inflation of 58%, according to data provider Trading Economics. Nigeria had inflation rates of 16.82% and 7.79%, respectively, as of April.
The new survey also says that Bitcoin’s appeal is relatively higher in low-income countries as well as countries that are heavily dependent on remittances.
“Countries with lower per capita GDP and higher shares of income from remittances have greater rates of people citing purchasing goods and services and sending money as good reasons to buy Bitcoin.”
The Block study further says that the top five countries that are most optimistic about the future of Bitcoin are developing economies located in Africa, Asia and South America.
“Nigeria, India, Vietnam, and Argentina have the highest rates of optimism about Bitcoin’s future as well as the highest claimed levels of cryptocurrency knowledge more broadly.”
Nigeria, India, Vietnam, Argentina and South Africa registered optimism levels of 60%, 58%, 56%, 55% and 52%, respectively.
