As the financial crises in Argentina continue to worsen, more and more individuals are flocking to Bitcoin. People living in the country are buying digital assets en masse as a hedge against the Argentine peso.
According to figures shared by Maximiliano Hinz, director of operations at Binance for Latin America, the number of new Argentinians using Binance has increased fivefold from 2019. The Latin American team at Binance estimates that in 2020 alone, the number of new users from the country tripled. They said:
From January to today, the number of Argentinean users in Binance has multiplied by five. But this was not the case on all platforms. If we talk about a market average, we could say that the number of users grew by 300% this year.
Hinz went further to explain that while the global coronavirus pandemic had a role to play in driving Argentinians to digital assets, the desire was already there. According to him, bad public policies have driven the country to a crisis level.
Binance is not the only exchange that is enjoying an influx of new crypto users from Argentina. Paxful also saw a new-user growth of more than 1000%, with a 450% increase in the volume operated in the country.
Recently, institutional and retail investors are turning to Bitcoin and other digital assets as a way to hedge against financial instability. Cryptocurrencies are appearing more alluring.