Argentina’s sentiment on cryptocurrency remains strong with citizens turning to digital assets as a way to hedge against inflation

AUGUST 28, 2020 — Global peer-to-peer bitcoin marketplace, Paxful, released today the results of a survey* on the current potential of cryptocurrency in Argentina and the overall sentiments towards digital assets, with a focus on bitcoin, and investment habits. The survey highlighted that Argentines are willing to venture into new forms of investment due to the need to protect the value of their financial savings. This comes as a result of the economic crisis going on in the country.

The Paxful Argentina survey provides a better understanding of the current economic situation in the country and the potential prospects of cryptocurrency use among its citizens.  It revealed that  73.4% of participants considered that, in the current economic scenario, cryptocurrencies are the most effective way to save and protect their funds. 

Out of a total of 1,113 responses, 69.5% of those surveyed said they had invested at least once in cryptocurrencies, with the main reason being the ability of digital assets to provide an economic shelter from the depreciation of the local currency due to inflation (42.7%). Cryptocurrencies have allowed citizens to regain control of their finances and have provided a sense of security that has resulted in more than half of those surveyed (67.8%) believing that cryptocurrency investments are extremely safe.  

When asked specifically about bitcoin, those who have invested in the past said they did so through careful evaluation of its global potential (53.9 %), the fact that it is decentralized (50.6 %) and, finally, its overall ability to provide security within an otherwise tumultuous banking system.  (49.1 %).

“During this year we have observed a major increase in the operations carried out by Argentine users on our platform, especially since the pandemic started, registering an increase of 37.5% in the volume compared to the previous periods,” said Magdiela Rivas, Paxful’s Latin America Manager.

With this survey, it was discovered that there is still a learning curve to cryptocurrency usage within the country. 30.5% of those surveyed stated that they had not yet invested in digital currency, to a greater extent as a consequence of a lack of understanding of its operation and applicability (24.2%), followed by the lack of funds to invest (12.8%), and fear of a type of unknown new currency (7.7%).

Given these results, Rivas commented that: “We know that the crypto industry offers many opportunities that people still don’t know about. At Paxful we are working to educate citizens and show them that there is a new alternative to invest their money, which gives them financial freedom.” 

(*) The research was carried out by Crypto 247 on behalf of Paxful in July 2020. The data was obtained through an online survey and the sample consisted of 1113 respondents, aged 18 to over 55, with a predominance of male gender.