Binance Benefiting From Inflation, Says The Company’s Latin America Head
Binance Latin America’s chief executive, Maximiliano Hinz, claims that rising inflation is the primary cause for the largest cryptocurrency exchange’s increased client base in recent months. Another aspect is the historically strong dollar, which has weakened other emerging-market fiat currencies.
Several professionals and celebrities have advocated in recent years that investing in bitcoin during an inflationary crisis is a good method for preserving one’s money. MicroStrategy’s Michael Saylor, Jordan Peterson, Barry Sternlicht, Paul Tudor Jones III, and others are examples.
In a recent interview with Reuters, Hinz stated that the rising client base of Binance is primarily made up of Latin American individuals. The main reason is the region’s soaring inflation and monetary distress:
“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 as an example by Hinz. The yearly inflation rate has topped 90%, and the country is also plagued by political upheaval, unemployment, and poverty. As a result, it’s no surprise that most of Binance’s new consumers are Argentines. Residents of Brazil and Mexico (both of which have substantial economic concerns) followed shortly after.
Numerous studies have found that Bitcoin acceptance is increasing in nations where the bulk of the population is poor and lacks basic financial services.
Many people believe that the fact that Bitcoin has a limited number of 21 million coins in existence is the key reason to invest in it. Furthermore, the output rate decreases every four years due to an event known as halving. As a result, basic economic theory suggests that when an asset becomes more scarce and demand remains constant or rises over time, its USD price should also rise.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews