The use of cryptocurrencies skyrockets in the least populated provinces of Argentina
A curious fact reveals how the adoption of cryptocurrencies is distributed in Argentina, which has been growing strongly since 2023 among the population seeking to protect itself against economic instability and high inflation. In recent weeks, the interest of users of these digital assets has been concentrated in Patagonia, the coldest region of the national territory.
This data arises from wallet operations Lemonone of the exchanges most used virtual machines in Argentina, according to Statista. On June 11, it launched an initiative in which all users of the platform can participate. Each week, those provinces that carry out the greatest amount or volume of transactions are ranked.
The platform proposal, called “Crypto Cup«, offers users different prizes, which consist of achieving the greatest number of operations following a set goal. Regardless of this kind of game, the curious thing is that the province of Land of Firethe southernmost place with the fewest inhabitants in the country, is the one that leads these transactions, with 19% of the index that measures this participation.
The island of Fuegian, which is currently going through a freezing winter with frozen seas and extreme temperatures below zero, has even been consolidating itself as the district “more bitcoiner” from Argentina, with the highest purchasing activity of the digital asset created by Satoshi Nakamoto.
The volume of cryptocurrency trading in this province may not surprise local industry insiders. This is the jurisdiction where the construction projects are located. Bitcoin mining most important in South America, due to the tax benefits and the region’s cold climate.
The rest of the provinces that follow with the greatest number of operations, in terms proportional to their population, are Chubut (8.7%), Neuquen (7.6%), Santa Cruz (7.2%), and Black river (6.6%). They are all districts that belong to the Patagonian region, according to the analysis of the digital wallet.
The Patagonian mining hub and the geographical factor
Probably, the booming mining activity in Tierra del Fuego influences the interest in digital assets in the rest of the cities and towns in southern Argentina. In addition, it is a region where the highest salaries in the country are recorded, due to the lack of connectivity and the high cost of living involved in living in a cold, hostile and windy climate.
There is another pole of attraction for the cryptocurrency industry in this vast region, which coincides with the third province in the ranking. In the Zapala free zonelocated in the province of Neuquen and more than 1100 km from the City of Buenos Aires, there are several bitcoin mining projects underway. In 2022, the British company FMI Minecraft LDT Mining announced an investment of about USD 28 million to transfer gas from the Vaca Muerta unconventional hydrocarbon field, and supply the project with that residual energy.
As reported by CriptoNoticias, 300 km from there, the company YPF Light recently announced another similar project in Neuquén. The intention is to take advantage of the gas from the state oil company’s exploration activities, in order to supply energy to the Bitcoin mining facilities in Neuquén. Genesis Digital Assets Limited (GDA) in the zone.
The urban centers with the largest number of inhabitants in Argentina are located in the geographical center of the national territory, with the province of Buenos Aires at the head, the Autonomous City of Buenos Aires, Santa Fe, Córdoba and Mendoza. Predictably, due to its demographic density, the majority of the country’s registered cryptocurrency users are distributed in those jurisdictions.
In its last semiannual report of 2023, the Bitso platform identified that the majority of users are in the city of Buenos Aires (18%), Córdoba (6%), Mendoza (3%), Rosario (3%) and San Miguel de Tucumán (3%).
In the case of the analysis carried out by the exchange Lemon, the volume of participation in each province was weighted, divided by the number of inhabitants. The objective was to identify the proportionality and relative weight of the interactions in each jurisdiction. From this estimate, the ranking and leadership of the interactions of the Patagonian users emerge.
A refuge against inflation
As reported by CriptoNoticias, Argentina is one of the leading nations with the largest number of cryptocurrency users. According to a Triple A report, the ownership rate of digital assets amounts to 18.9%.
Historically, inflation and the devaluation of fiat money is one of the factors driving the adoption of cryptocurrencies throughout Latin America. To sustain the savings capacity and income level, the figures show that stablecoins They are preferred by many of the traders in regional exchanges, according to the latest report from the analysis firm Kaiko.
In Argentina, this trend is no exception, and this type of tokens linked to the value of the dollar have a significant appeal. This inclination stems from the Argentines’ habit of saving in the north american currency. This is a practice to take refuge from the recurring fluctuations in the value of the local currency and inflation of the last four decades. Last year alone, the price variation reached 211%.
Bitso reported that Argentina is the only country in the region in which the acquisition of digital dollars (USDC and USDT) exceeds almost 5 times that of other cryptocurrencies, with 60% of total purchases, compared to 13% represented by bitcoin. In Colombia, another of the countries with high inflation during 2023, 31% of purchases also corresponded to stable currencies.
Despite this cultural preference, Kaiko’s latest market report shows that the appreciation of bitcoin is more profitable compared to the region’s fiat currencies. The cryptocurrency gained 100% against the Argentine peso (ARS), between January and May. It also achieved greater performance against more stable currencies such as the real (BRL), obtaining 70% more profit.
