Fear of economic crisis forces Spaniards to seek refuge in bitcoin.
The latest monthly inflation report in Spain sparked the population's anger in social networks. Didn't they say that the price increase was temporary? How long is this going to go on? People read on the web. The rate of price increases is now 7.6%, the highest figure in 35 years, which makes people have less and less money and look for savings alternatives such as bitcoin (BTC).
This relentless inflation situation is worrying because Spain has always been seen as one of the top European powers. Even though its economy has never been number one, it has remained among the best places to live. Unlike other countries where salaries are higher, and money is more than enough, Spaniards have something unique that makes people from all over the world want to settle here. Its climate, culture, landscapes, infrastructure, and the priority given to leisure in everyday life are some factors that make the standard of living in Spain better than in other parts of Europe and the world. So much so that it is still among the countries with the highest life expectancy in the world. And if you don't trust the studies, see how many older people you find on a terrace in broad daylight having a beer.
Although the quality of life that distinguishes Spain is now at stake, everything is becoming more and more expensive, and indulging is becoming more and more complex with rising inflation. Currently, the country is positioned among those with the highest inflation in Europe. A list in which the country is getting higher and higher. And for now, there is no government solution on the table to put an end to this. Quite the opposite. It has joined the global trend of saying that rising prices are the fault of Russia's war against Ukraine.
As anywhere on the planet, the government is always looking for excuses to wash its hands of something it does not solve. Something that makes people have to find their ways to overcome the economic problems they cause. This is not new. It has always happened in history. What has happened is that the issue has worsened in recent years. Inflation as high as the one reached in 2022 has not been recorded since 1987. Something weighs on the inhabitants' wallets and has made them look for alternatives so that their money continues to reach.
This situation has caused people to show their discontent on social networks, where the bitcoin community in Spain has made its presence felt. Like Mercedes Durán, author of the book "How to invest in bitcoin and create a millionaire mind, " posted on Twitter: "Inflation in the United States reaches 7.9%. In Spain, at 7.6%, they pretend to make you believe it was Putin's fault. So rethink everything you have swallowed without chewing during the last two years. And buy bitcoin".
Why do Spaniards use bitcoin against inflation?
In this economic mess that the country is going through, bitcoin, a currency that is issued and used in a decentralized way without government control and works as a shield against inflation, makes more and more sense. This is because its issuance capacity is limited, unlike euros which can be printed more, causing inflation if the state decides. Moreover, once the cryptocurrency is finished being mined, there will only be 21 million bitcoins in the market, as its code says. And they can be mined from anywhere in the world by solving mathematical calculations. It's like the new tech or nerd mining of the 21st century. That is why many say that bitcoin is digital gold.
This anti-inflationary property adds to another critical feature that has made the community that uses it in Spain increasingly large. And this is because of the high volatility of its price. This is a factor that drives many away for fear of losing money while at the same time attracting those who see in BTC an opportunity to increase their savings.
The price of bitcoin has gone from worth one cent to more than 58,000 euros in just thirteen years since its creation in 2009. This has allowed different people who bought the cryptocurrency to get rich quickly, which shows that it is undoubtedly better to use bitcoin rather than euros. However, its value fluctuates every second depending on supply and demand, which means there is a risk of losing money in short periods. However, it has always managed to increase in value in the long term because demand is growing. This combination of bitcoin properties leads us to think of a monetary system that breaks with everything humanity has used so far. It implies decoupling from the traditional design and adapting to a reality that works differently, with its pros and cons. And it is something that has attracted Spaniards, as can be seen in their domestic market.
According to Coin ATM Radar, Spain is currently the third country in the world with the most bitcoin ATMs, after the United States and Canada. And that is just a small example of its adoption in the region, as most transactions are made from apps on cell phones. An Estatista survey done in December 2021 points out that 4 million Spaniards use cryptocurrencies or 9% of the population. This makes Spain one of the countries with the highest bitcoin usage, and this is no coincidence. Its growing inflation has motivated its inhabitants to try this method of money, either because of their ideals in favor of this technology or as an investment. A practice that seems likely to grow if the government does not offer an economic system that works better.