While crypto enthusiasts scratch their head over the sideways movement of today’s market, an equally confusing event is occurring in the southern region of Latin America. Despite the current “crypto winter” Argentina is becoming a hot spot of a bitcoin loan and all things crypto.
WHY DOES ARGENTINA LOVE CRYPTO AND THE BITCOIN LOAN SO MUCH?
The amount of bitcoin usage in Venezuela and Argentina are growing at a curiously fast rate. Because of its political unrest, Venezuela has most of the attention. Yet, over in Argentina, there is a different story. Crypto adoption in the country is at an all-time high with citizens using the bitcoin loan to circumnavigate high inflation and inefficient banks.
ARGENTINA CITIZENS CHOOSE BITCOIN LOAN OVER TRADITIONAL BANKS
Inflation in Argentina continues to rise. Last year, it hit 47 percent. That, coupled with the negative history of local banks made for a perfect “crypto storm” this year. Argentinan’s have welcomed cryptocurrency with open arms. Weekly transaction volumes in the country hit a record high of 9.4 million pesos in December 2018. Even with the frigid crypto winter, the numbers are continuing to rise. Everything from taking a bitcoin loan, and opening up a crypto startup is becoming a common occurrence in a country excited to take this technology to new heights.
ARGENTINA CRYPTO STARTUPS LEVERAGE BITCOIN LOAN
Since Argentina banks have failed, bitcoin loan sites like YouHodler are becoming popular. Users can choose from BTC, BCH, BSV, ETH, XRP, LTC and more as collateral options. In exchange, they receive a near instant fiat or Tether (USDT) loan.
Instead of waiting for a loan at the bank, Argentinian crypto enthusiasts, miners and investors are turning to crypto lending platforms for a more transparent, efficient and profitable experience.