Binance’s user numbers are growing according to the chief executive of Binance Latin America, Maximiliano Hinz, who claimed that rising inflation is the primary factor behind the largest cryptocurrency exchange’s recent growth in clientele.
The historically strong dollar, which has devalued other fiat currencies from emerging nations, is another contributing reason.
Numerous experts and famous people have suggested investing in bitcoin during the current inflationary crisis as a suitable way to protect one’s money during the previous few years. These individuals include Michael Saylor, Jordan Peterson, Barry Sternlicht, Paul Tudor Jones III, and many others from MicroStrategy.
Binance’s User Numbers Growing In Latin America
In a recent interview with Reuters, Hinz stated that customers from Latin America make up the majority of Binance’s expanding clientele. The region’s soaring inflation and financial misery are the main causes:
“Now that we are seeing inflation ramping up worldwide, we are seeing that more and more people are seeking cryptocurrency, like bitcoin, as a way to protect themselves from inflation.”
Argentina was given by Hinz as a representative case. The country is ruled by political chaos, unemployment, and poverty, and the yearly inflation rate has topped 90%. As a result, it is understandable why the majority of Binance’s new users are Argentines. Locals from Brazil and Mexico (where economic problems are also prevalent) come next.
According to numerous studies, countries, where the majority of the population is poor and doesn’t have basic access to financial services, saw an increase in the adoption of cryptocurrencies.
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The fundamental justification for investing in Bitcoin, according to many, is that it is special in that there will only ever be 21 million coins produced. In addition, the manufacturing speed decreases every four years or so following an occasion known as the halving. Therefore, according to fundamental economic theory, the USD price of an asset should increase in line with its increased scarcity and steady or rising demand.
Do Others Think The Same?
BTC has frequently been referred to by Michael Saylor, Executive Chairman of MicroStrategy, as the ideal financial tool during periods of rising inflation. Last year, he counseled Turkish citizens to exchange their Liras for the digital asset in order to “thrive” in their country, which has a collapsed economy and a sinking fiat currency.
A well-known BTC bull is billionaire hedge fund manager Paul Tudor Jones. He thinks it is even more effective as an inflation hedge than gold.
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