Bitcoin Demand Surges in Argentina, Hitting Two-Year High

Key Takeaways:

Economic instability driving adoption: Argentina has a history of economic volatility, including high inflation rates and currency devaluation. Citizens often turn to alternative stores of value, such as Bitcoin, to protect their savings from these economic uncertainties. The recent surge in demand indicates a heightened concern among Argentinians about the stability of the traditional financial system.

Bitcoin as a hedge against inflation: With inflation eroding the value of the Argentine peso, Bitcoin is increasingly seen as a hedge against this depreciation. Unlike fiat currencies, Bitcoin’s limited supply and decentralised nature make it immune to government manipulation and inflationary pressures. As a result, Argentinians have turned to Bitcoin to preserve their purchasing power over time.

Growing awareness and accessibility: Increased awareness about Bitcoin, coupled with improved accessibility through various platforms and services, has contributed to its rising demand in Argentina. As more people become familiar with cryptocurrencies and the ease of acquiring and using them improves, adoption rates will likely continue to rise.

Argentina, known for its volatile economy and currency fluctuations, has seen a remarkable surge in demand for Bitcoin (BTC), reaching its highest point in almost two years.


A recent report from Bloomberg revealed data from Lemon Cash, a cryptocurrency exchange that BTC doubled the weekly average compared to 2023; nearly 35,000 users in Argentina purchased BTC in the week ending March 10. The CEO of the digital wallet Belo, Manuel Beaudroi, suggested that Argentina’s stablecoin purchases declined from 70% to 60% while BTC attracted more interest, resulting in a price surge.

Beaudroi said, “The user decided to buy Bitcoin when they saw the news that the currency is going up, while stablecoin is more pragmatic and is often used for transactional purposes, such as as a vehicle to make payments abroad.” He added, “Bello has seen volume in Bitcoin and Ether increase tenfold in 2024 compared to the same period last year.”

The country has long grappled with economic instability, high inflation rates, and currency devaluation, prompting citizens to seek alternative stores of value. 

With its decentralised nature and limited supply, BTC has emerged as an attractive option for Argentinians looking to safeguard their wealth against economic uncertainty. The ongoing decline of the nation’s currency is a significant factor in the increased demand for BTC. According to reports, the peso’s value against the United States dollar has plummeted in the past twelve months, dropping from $0.0049/peso in March 2023 to $0.0012/peso in March 2024. It was noted that Lemon and Belo were not the only platforms seeing a surge in demand; other exchanges in Argentina, Including Ripio, reported similar trends. 

Economic Turmoil Fuels Bitcoins Adoption 

The recent spike in BTC demand in Argentina can be attributed to various factors, including inflationary pressures and government policies. The Argentine peso has faced significant devaluation, leading to many citizens losing purchasing power. Inflation rates have soared, eroding savings and prompting individuals to explore alternative financial instruments. 

Bitcoin provides a way around these restrictions, allowing people to transact and store value outside the traditional financial system. As a borderless and censorship-resistant asset, BTC offers financial inclusion to those who may be underserved by traditional banking infrastructure in December 2023, the minister of foreign affairs, international trade and worship, Diana Mondino, revealed that a decree aimed at economic reform and deregulation allowed the use of BTC and other cryptocurrencies in Argentina under certain conditions.

Mondino said, “We ratify and confirm that contracts can be settled in Bitcoin in Argentina. And also any other crypto.”

Growing Institutional Interest

Institutional interest in BTC has also increased in Argentina. Companies seeking to hedge against currency risks and preserve capital increasingly turn to BTC as a store of value. Large corporations and financial institutions allocate some of their portfolios to BTC as part of their risk management strategy.

Accepting BTC as a legitimate asset by institutional investors and traditional financial institutions has bolstered confidence in its long-term viability. This institutional validation has contributed to the mainstream adoption of BTC in Argentina and beyond.

Challenges and Opportunities

While the surge in BTC demand presents opportunities for investors and businesses, it also challenges regulators and policymakers. The decentralised nature of BTC makes it difficult to regulate, raising concerns about consumer protection, financial stability, and money laundering.

On the other hand, embracing BTC and blockchain technology could provide economic growth and innovation opportunities. By fostering a conducive regulatory environment and promoting blockchain education, Argentina could position itself as a crypto development and investment hub.

Fhumulani Lukoto Cryptocurrency Journalist

Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.

View all posts by Fhumulani Lukoto >

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