# Cryptocurrency as an Inflation Hedge: How Argentinians and Turks are Embracing Crypto
In recent times, cryptocurrency has been described as volatile and risky. However, this perception seems to be changing slowly, especially with Bitcoin (BTC) increasingly being perceived as an inflation hedge. During the last bear market, BTC lost this status. Still, people in countries such as Argentina and Turkey, where inflation is persistent, are increasingly turning to crypto to escape the devaluation of their local currency.
## Inflation is Driving People to Crypto
According to Reuters, 27.1% of Turks now own cryptocurrency, making crypto the most popular asset in Turkey worldwide. Argentina follows closely behind, with 23.5% of Argentines owning crypto. This percentage is significantly above the world’s population’s average of 11.9%. The high percentage of crypto ownership in both countries is not by accident since both countries face high inflation rates.
In Turkey, the annual inflation rate is currently over 50%. In Argentina, the situation is even more alarming, with the inflation rate at an astounding 104%. By comparison, the Netherlands is experiencing an annual inflation rate of 5.2%.
In the past, residents of Argentina often sought refuge in US dollars. However, the high demand for dollars has driven up the street value of the US dollar. Currently, dollars are traded in the black market at 464 pesos per unit, while the official value of a dollar is only 222 Argentine pesos.
## Crypto offers a Solution
Crypto seems to provide a solution to this type of inflation, with stablecoins being particularly popular. Stablecoins are crypto assets that are linked to, for example, the dollar. USDT and USDC are popular examples of stablecoins.
Turks are also recognizing the value of stablecoins, with the trading volume of USDT against the Turkish lira reaching record highs last week. The Turkish lira, along with the Argentine peso, is freefalling, and people are eager to convert their liras into stable assets.
Additionally, in other countries, crypto is becoming an increasingly popular choice. Bitcoin, in particular, seems to be re-establishing itself as “digital gold.” Over the past few months, we have seen bitcoin react strongly to concerns related to American banks. Investors seem to be using BTC as an inflation hedge, alongside gold.
Overall, cryptocurrency is becoming an increasingly attractive option for people living in countries where inflation is high. Crypto offers an alternative store of value and protection against inflation, which traditional assets such as fiat currency, bonds, and stocks can’t provide.