Bitcoin Reaches New All-Time Highs Against Inflationary Fiat Currencies
The price of Bitcoin (BTC) has achieved new all-time highs against some of the most inflationary fiat currencies, such as the Argentine peso (ARS), Nigerian naira (NGN), Turkish lira (TRY), Laotian kip (LAK) and the Egyptian pound (EGT).
The surge in price is due to the devaluation of the currencies, compounded by the recent 16% increase in the price of Bitcoin. The NGN and TRY hit their lowest points against the U.S. dollar on Oct. 24 and Oct. 25, while the ARS is only 0.85% away from its all-time low (against the U.S. dollar).
The adoption of Web 3.0 crypto coins and tokens, along with the creator economy, has undoubtedly been a major factor in the rise of Bitcoin’s price.
Web 3.0 and Crypto Coins as a Hedge Against Inflation
The International Monetary Fund recently reported that the Venezuelan bolivar has the highest annual inflation rate at 360%, followed by the Zimbabwean dollar (314%), Sudanese pound (256%) and ARS (122%). The Turkish lira and Nigerian naira came in sixth and 15th with annual inflation rates of 51% and 25%, respectively.
Crypto observers have suggested that digital assets, such as Bitcoin and stablecoins, could be used as a hedge against rocketing inflation, and the recent figures could provide more evidence for this narrative. Chainalysis’ Sept. 12 report revealed that Nigeria, Turkey and Argentina are among the top countries for cryptocurrency adoption.
The potential of Web 3.0 and crypto tokens to combat inflation has been a major focus of the creator economy, and the list of crypto coins is growing. Microsoft’s Web Services Enhancements 3.0 has enabled developers to create new applications and features, and the main features of Web 3.0 are decentralization, tokenization, and trustless computing.
Cryptocurrency Regulations in Nigeria and Turkey
The governments of Nigeria and Turkey have not always been in agreement with the cryptocurrency industry.
In February 2021, Nigeria’s central bank prohibited local banks from providing services to cryptocurrency exchanges. However, progress was made in December 2022 when the Nigerian government announced their intention to pass a bill recognizing cryptocurrencies as “capital for investment” due to the need to keep up with “global practices”.
Turkey is a country where cryptocurrency is becoming increasingly popular. However, in April 2021, the Turkish central bank banned the use of cryptocurrencies for payments for goods and services. The central bank has also been working on a central bank digital currency (CBDC) to digitalize the Turkish lira.
Web 3.0 and Argentina’s Inflation Crisis
Meanwhile, the outcome of Argentina’s presidential election in November could have an impact on the country’s inflation crisis. On Nov. 19, Javier Milei and Sergi Massa will face off in a run-off vote.
Massa, Argentina’s minister of economy, wants to resolve the inflation crisis by launching a central bank digital currency (CBDC) “as soon as possible”. He also desires Argentinians to be “patriots” and defend the Argentine Peso, rather than using the U.S. dollar.
In contrast, Milei wishes to adopt the U.S. dollar and abolish Argentina’s central bank.
Web 3.0 and its crypto tokens, crypto coins, creator economy, and other features are gaining traction and could play a pivotal role in Argentina’s inflation crisis. The crypto price of these tokens and coins could potentially influence the election results.
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