Paxful Survey Of Argentines Points To Crypto As Most Effective Saving Mechanism

News | August 31, 2020 By:

Peer-to-peer (P2P) bitcoin marketplace Paxful has released the results of a survey that examines cryptocurrency usage in Argentina, and the overall sentiments towards digital assets, with a focus on bitcoin, and investment habits.

The survey, which correlates with the increase of usage Paxful has seen on its platform since COVID-19 (37.5% increase in the volume of bitcoin traded), 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.

Inflation hit nearly 54% in 2019 in Argentina – the most since 1991 brining about a year that saw the recession deepen with sharp devaluations of the Argentine peso, high unemployment, growing poverty, and increasing desperation. The inflation rate in the country was recorded at 40.60% in July of this year, a slight improvement by the new administration that has come with mixed feelings from the Argentinian people.

As a result of this, the Paxful survey found primarily, 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.

Regarding bitcoin investments, 53.9% of the respondents said they invested in the past through careful evaluation of its global potential, 50.6% said they invested because the cryptocurrency is decentralized, and 49.1% said they invested because of bitcoin’s overall ability to provide security within an otherwise tumultuous banking system.

“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%).

“We know that the crypto industry offers many opportunities that people still don’t know about,” Rivas said. “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.”