The Impact of Inflation on Crypto Adoption

 

By simple definition, inflation is an increase in the price level of a selected basket of goods and services produced in an economy. The inflation rate is a concept that measures the percentage change in the prices over a certain period of time. Inflation impacts the purchasing power of a nation’s currency, higher inflation means a decrease in purchasing power. Rising prices affect the cost of living, the cost of financing, and the cost of doing business in a particular country. Some countries are battling with hyperinflation, Venezuela ranked number 1 with a skyrocketing inflation rate of 19,906% in 2019, according to the latest data released by Statista. Zimbabwe came at the second spot with an inflation rate of 255%. Argentina ranked third with a 53% inflation rate. A higher inflation rate had a negative impact on their respective currencies. The Venezuelan Bolivar depreciated more than 1000% in less than a year against the US dollar. Argentinian Peso depreciated around 50% in…


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