According to Bloomberg, which cites data produced by a local cryptocurrency exchange called Lemon Cash, Bitcoin is becoming a popular hedge against economic volatility in Argentina, where inflation has climbed to astounding heights.

Bitcoin transactions have significantly increased, approaching their greatest weekly value in 20 months, according to Lemon Cash's data. The upsurge seems to align with President Javier Milei's shock treatment measures, which are intended to stimulate the economy and drive Argentines to look for other sources of financial stability.


As a result of the nation's 276% annual inflation rate, more and more people are using Bitcoin to safeguard their financial assets.

Lemon claims that in the week ending March 10, around 35,000 Bitcoin purchases were made, which is twice the weekly average from the previous year. Similar patterns are seen in Argentina's other exchanges as well. Argentina tops Latin America in terms of raw cryptocurrency transaction volume, with an estimated $85.4 billion in value received, and ranks second in terms of grassroots adoption, according to a study report published earlier by blockchain analytics company Chainalysis.

In order to protect themselves from inflation, Argentines are diversifying their portfolios as Bitcoin grows popularity as an alternative investment.
 

Scam activity has, however, also increased as a result of the growing interest in cryptocurrencies. The head of legal for Bitcoin Argentina, a local non-governmental organization focused on cryptocurrency, Gabriela Battiato, has issued warnings about the risks of making rash investment decisions in the unstable cryptocurrency market after the organization reports a five-fold increase in scams related to cryptocurrency in February of this year.