Bitcoin is trading at a premium in several countries facing extreme currency devaluation and political uncertainty, including Nigeria and Turkey.
The leading cryptocurrency hit new all-time highs (ATH) in Nigeria, Turkey and Argentina on Friday morning, as residents turn to the safe-haven asset amid rising inflation rates.
Bitcoin hits new high in several countries
Bitcoin surged to 28.4 million Nigerian Naira (NGN), 12.4 million Argentine Pesos (ARS), and 979,000 Turkish Lira (TRY), as these countries’ fiat currencies continue to fall freely.
According to data According to the International Monetary Fund (IMF), Argentina is currently facing triple-digit inflation, with the Argentine peso ranking fourth in the list of currencies with the highest annual inflation rates.
The Turkish lira and Nigerian naira rank 6th and 15th, with inflation rates soaring 25% and 52% over the past year. The massive decline in the purchasing power of these currencies has significantly increased demand for bitcoin, historically seen as a hedge against inflation.
Bitcoin Adoption Rises in Inflation-Hit Countries
Crypto adoption rates in Nigeria, Turkey, and Argentina have continued to grow despite restrictions placed on the digital asset market in these jurisdictions. A recent channel analysis report revealed that Nigeria is the second most active country in crypto trading.
Despite the Nigerian government’s ban on cryptocurrency trading in 2021, the country continued to record significant trading volumes. Crypto transactions in the African country increased by 9% year-on-year to reach 56.7 billion in June 2023.
The Nigerian government is also softening its stance on cryptocurrencies as the use of digital assets becomes more prominent. In December 2022, the government revealed is considering passing a bill legalizing Bitcoin.
Turkey and Argentina are also not far behind in the adoption trend, with the two countries ranking 12th and 15th respectively on Chainalysis’ list. Nearly 10% of the Turkish population is turning to Bitcoin to protect their funds from the devastating effects of inflation on the lira.
Bitcoin has become a major talking point in Argentina, with politicians leveraging the digital asset’s popularity to gain voter support ahead of the country’s presidential election.
Bitcoin checked in an ATH against the Argentine peso in August after pro-Bitcoin presidential candidate Javier Milei won the presidential primary election.