Fiduciary money is being devalued in America and several countries will already have a summit where they will talk about bitcoin as a currency for legal use
Hello. Today on social networks such as twitter the news was heard that a summit of nations is planned to be held on March 17, at the summit it is planned to talk about a couple of things. One is the effect of the high inflation rate that they suffered in 2022 and the other is having a strong level of adoption of cryptocurrencies.
The countries of America were strongly affected this 2022 since fiat money was losing its purchasing value, which is why the inflation rate closed as the highest, something that had not happened in two decades in some countries.
Here I indicate the percentage of inflation in some countries that were affected last year, Brazil closed at 5.79%; Mexico at 7.82%, Colombia with 13% and Cuba with 40%, something that had not happened in a couple of decades. While Argentina registered 98% and the throne was taken by who else Venezuela with 234%.
In the case of Venezuela, the use of the digital bolivar that is not backed by anything since the government has been bankrupt for a long time, it is choosing to use digital money without any purchasing value in order to save the country's economy. If we go to local banks, 90% do not have physical money to support the digital bolivar. The digital bolivar exists because Venezuelans have no choice but to accept it.
The other countries mentioned are not going through what is happening with Venezuela but they have a problem since the inorganic printing of money increases. Such fact has affected the currencies of these emerging economies and has made people take more interest in bitcoin.
If we search in google we can see that Argentina and Mexico are among the 30 countries that their inhabitants are eagerly looking for the adoption of cryptocurrencies in their country, something that happened recently in Argentina indicates this when 1700 mining machines were seized and of all The countries of Latin America is the one that uses the most bitcoin in the world.
My personal opinion |
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Countries have lately made bad decisions to curb inflation, believing that by printing more money they can solve the problems facing the country, that is a mistake that even former President Donald Trump made as a big businessman and has knowledge of economics. If the use of cryptocurrencies in all the countries of the world were taken, the small problem would be the high fee rate for each transaction, so we should choose to use cryptocurrencies that have a very low fee rate and I think that steem has a boost in that sense.
Post writter by @nano-gamer