By Nicolas Abington | Crescent City Capital Market Analyst Intern
Countries like Venezuela, Zimbabwe, and Iran citizens have begun to feel these pressures through rampant inflation in their local currencies as their governments fair poorly in their own geopolitics. As more countries, monetary policies begin to affect everyday citizens, more people are looking for alternatives to hedge against that risk.
Cryptocurrencies have been increasingly useful in this regard as they are independent from the control of sovereign entities. Citizens have typically used Bitcoin to satisfy this need as it’s the most well known and has the most easily accessible. As situations have evolved in these countries, citizens are looking for even more alternatives.
For example, Latin American countries have begun to adopt crypto even with heavy bans from their governments. Venezuela has recently started adopting Dash pushing a 100% increase in its market cap after a series of internet outages. Argentina has recently had a 34% increase in daily volume on coindance, transacting 32.6 million Argentinian pesos to buy Bitcoin and Ethereum.
African countries have also been doing their best to be apart of the crypto space. This should come as no surprise as countries like Zimbabwe have had historically one of the most heavily inflated currencies ever created with just $.40 USD equating to 100 trillion zimbabwe dollars. As a result, citizens have been adopting Bitcoin and Ethereum in an attempt to restart a trading system between citizens.
Cryptocurrencies have an opportunity to save citizens from rampant poverty and if invested correctly can contribute to their economic growth. In any case, as traders, it’s important to keep an eye on these countries so that we may have a better understanding of the coins that have use and those that are duds.