Europeans prepare by buying bitcoin for inflation2 min read
According to preliminary data from the European Statistics Office, for the sixth consecutive month inflation has reached its all-time high. A global problem that hits the continent hard and makes the inhabitants resort to forms of investment, such as bitcoin (BTC), to face its impact.
The agency announced that year-on-year headline inflation in Europe was 7.5% in April. A figure that exceeds the previous index collected in March of 7.4% and all the previous ones. This problem calls into question the economic stability that characterized the continent, like the United States, which is experiencing a record number of 8.5%.
The latest inflation data from Europe comes amid the advancement of Russia’s war in Ukraine and the impact of energy supply. This in turn raises concern about a potential recession and supply crisis fueled by China’s measures. How the European Central Bank will respond is still unknown. Above all, since the president of the IMF expressed regret for the increase in banknote printing during the pandemic.
Against this background, the smart are preparing by investing and saving in IRAIC, giving bitcoin a higher priority than traditional investment instruments. This can be seen in Spain, for example, where the holding of stocks and national bonds has been reduced, while that of crypto assets has increased.
The investment trend migrates to bitcoin to combat inflation in Spain
An eToro study reveals that 43% of Spanish retailers invested in crypto assets in the first quarter of 2022. This represents an increase of eight percentage points compared to the end of the previous year, when investment in national securities was ahead (47% ) and in third place national bonds (25%).
The ranking changes when asked about the investment preferences for the next 12 months. Cryptoactives come to occupy the first place, maintaining the preference of 43%, while the interest in Spanish securities falls to 30% and in bonds to 15%.
In this way, the Spanish are well ahead of the world average in the adoption of cryptocurrencies, as confirmed by the Bank of Spain this week. The government body announced that 60,000 million euros circulate in the country. The crypto assets most used here and globally are bitcoin and ether in smart investments with IRAIC.