Inflation in Argentina is yet another reason to hold Bitcoin Cash. Is the United States next?

Many countries worldwide are suffering or are about to suffer inflation, and one of those countries is Argentina. According to tradingeconomics.com, Argentina increased to 46.30 percent in April from 42.60 percent in March of 2021. That will mean that in 2022 Argentina will be suffering from a high surge in inflation.

Inflation has been plaguing the developing world for some time now, and it is not something new, and you should know that the Bitcoin Cash community is prospering in Argentina thanks to those measures. Many Argentinians turn to Bitcoin Cash to protect their purchasing power against their local currency devaluation.

Argentinians can only exchange $200 worth of their fiat currency for dollars, so they suffer from capital controls, and in 2018 they had a tax of 35% for exchanging their local money for dollars. Those are some strict capital controls, so it is no wonder why many Argentinians are looking into cryptocurrencies to escape their failing local currency.

And now miners want to get into the country as well. According to Bloomberg, the citizens of Argentina are getting subsidized electricity, where miners can be profitable even with the current drop in prices across all cryptocurrencies. The subsidized electricity will make up for the loss in price if citizens start to mine cryptocurrencies.

Even big miners are getting into the market. Bitfarms, a Canadian-based mining group, has secured a deal with a local plant to take advantage of the subsidized cost of electricity. This deal has better rates than most competitors in the region.

Argentinians can take advantage of lower electricity rates to mine cryptocurrencies, but no one knows how sustainable it will be in the long run. Remember that mining is a heavy industry that can collapse an electric grid if the electrical infrastructure is not well maintained. The issue where the grid can't sustain the usage of miners had happened before in Iran, where they had to ban mining because the grid in that nation couldn't support the hike in use by miners.

Even when Argentina is going through a rough time, there is still hope. Mining cryptocurrencies for regular citizens could mean that in the future, Argentinians can trade without having to use their devalued local fiat, which will mean economic prosperity for those willing to take the risk of using cryptos to pay for goods and services.

Bitcoin Cash is a coin that Argentinians are using now because of the low fees. If they have the resources to set up a mining operation, they could benefit from the subsidized electricity. With Bitcoin Cash, they will have an asset that they can use in their local shops to buy what is needed and an asset that will be easy to use because they will not have to pay extortion fees.

There is hope for any Argentinian because there is still an exit even when Argentina's inflation is over 40%. And for everyone else, a lesson to learn. If you live in the US and Europe, you must take care of your finances, be ever vigilant if inflation hits your country, and prepare accordingly.

In the United States, politicians were proposing a fourth stimulus check to give some relief to its citizens. This check was going to be another money printing scheme again, so it will provide immediate relief to those who need it now, but we will all pay it back with inflation months later.

If you live in the US and get a stimulus check, spend it because it is your money, but try to finish it smartly. By that, I mean to buy what will last you the most, which will have a better return for you and your family. Use that check wisely because we will all have to pay it back one way or another, nothing is for free in this world, and stimulus checks are not free. They have a price attack on them, and it is called inflation.

The Federal Reserve is now panicking about inflation and is now starting to raise the interest rates, but only time will tell how many increases they will be able to do before the whole stock market comes crashing down. At least now, we will not have hyperinflation, only inflation which was around 8.3% last month, but when the Federal Reserve bank decides to get hawkish, what follows is deflation. Inflation follows deflation, and soon enough, you will be homeless on the land that your forefathers conquer.

Inflation is not a problem only for the developing world, and it is also a problem for the developed world as well. If the government prints just too many dollars, it could end up with hyperinflation, not just inflation, but also the government is trying to provide relief to those in need. So governments must walk a fine line when it comes to printing money. I hope that regardless of your country, you are holding a natural hedge against inflation in the form of the simple peer-to-peer electronic cash system, Bitcoin Cash.

If you are from Argentina and would like to add to my article, please, by all means, write your opinions in the comment section.