While decentralized finance is one of the recent trends that some traders hope to make their profits through the complex lending and governance protocols it offers, some investors are turning to Bitcoin, which is a censorship-resistant way to protect against the rapid inflation of local currencies.

According to a recent report by the analytics firm Arcane Research, Bitcoin has broken price records in Argentina, Brazil and Turkey with growth of 169%, 20% and 5% respectively over the past two months.

Did you know this # bitcoin Breaking its all-time high against the Argentine peso, Turkish lira and Brazilian real?

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ArcaneResearch August 10, 2020

These numbers and statistics tell a lot about the turbulent state of the economies of these countries and speak frankly about a growing domestic interest in cryptocurrencies.

When it comes to Argentina and Brazil, in particular, we find that there is a significant increase in the volume of Bitcoin trading locally.

The digital currency is gaining popularity among traders as an inflation hedge.

Both Brazil and Argentina are already suffering from financial crises, but the Corona virus comes and makes matters worse.

The financial turmoil caused by the coronavirus, which the Brazilian president saw last May as just a “little flu”, has caused the value of the local Brazilian currency to depreciate by more than 30% against the dollar.

Interest rates have also fallen to historic levels of 2% annually, causing many investors to turn to inflation-resistant assets that are safe havens in such critical times.

According to data from the metrics website “Useful tulip” Brazil recorded more than $700,000 in bitcoin trading volume last week, a new high since the beginning of the year.

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Meanwhile, last week, Argentina exceeded $1 million in weekly bitcoin trading volume, according to data from the same source mentioned above, a record that traders in the country had not previously reached, against the backdrop of the severe economic conditions in Argentina.

The left-wing governments of the Kirchner dynasty and the right-wing governments from Menem to Mauricio Macri have both failed to move the country forward.

Read:Here are the biggest beneficiaries of the recent Bitcoin rally

Current President Alberto Fernandez inherited from former President Macri an economy that is considered the second most miserable economy in the world, after Venezuela.

Against this background, it appears that Argentines are turning to Bitcoin in greater numbers, as a potential way to guard against devaluation of the local currency, given that local regulations prevent them from easily accessing foreign currencies such as the dollar or the euro.

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