In countries with failing economic systems, is common to find weak national currencies whose value has been significantly depreciated. This “weakness” may include a high rate of inflation, deficits, exaggerated level of imports, and everything that comes with a poor socio-economical situation for a country. Statistics show that citizens of countries with failing currencies in every part of the globe are turning to crypto for investment and wealth protection as they want to diversify from their home fiat currency. As they face financial crisis, they’re constantly searching for a better store of value.
While consumers access to cryptocurrencies is broadening rapidly, so is the market for crypto projects.
Do you think crypto is a viable solution for these complicated countries... or it may make it worse long-term?
It is probably one of the classic use cases for cryptocurrencies. Even governments in the western world tend to use relaxed monetary policies and try to hide the inflation supplying false data or using biased formulas to calculate it.
Against those economic policies and against the economic policies of very irresponsible governments such as Venezuela, Nigeria and others, people recur to Bitcoin mostly to have an storage of value, besides possibly some speculation. Nigeria is a classic example since typically Bitcoin is relatively more expensive than anywhere else.
