Fiat currency inflation is too crazy, these five countries are expected to become dark horses in Bitcoin trading next year

Currently, 14 countries have inflation rates exceeding the normal standard of 18%. As of press time, inflation rates in 10 of these countries are still rising. In recent times, crisis events such as bank bailouts and hyperinflation have led to turmoil in the world economy, while the price of Bitcoin and the number of users have experienced multiple increases.

Bitcoin, a safe-haven asset

2016 was a year of global economic turmoil, and in 2017, the situation will only get worse due to government monetary policy mistakes.

In March 2013, the Cypriot government attempted to freeze people's bank accounts for taxation, causing public panic. In the following weeks, the price of Bitcoin soared five times. It may be that people saw the advantages of Bitcoin in economic hedging and speculation.

Since then, the government’s economic missteps have never stopped, from the Greek crisis to the Brexit referendum to Venezuela’s hyperinflation to India’s demonetization, each of which has been accompanied by a rapid increase in the price of Bitcoin as more and more investors realize the cryptocurrency’s safe-haven properties. Indeed, even experts have hyped Bitcoin’s safe-haven properties in mainstream media, arguing that Bitcoin functions similarly to, or even better than, gold.

According to data from TradingEconomics, 14 countries have inflation rates exceeding the normal 18% standard. As of press time, inflation rates in 10 of these countries are still rising. Among these 10 countries, if inflation rates remain high in 2017, people in 5 of them are absolutely capable of choosing Bitcoin as a safe-haven asset both economically and technically.

Venezuela

Venezuela's currency problems are still getting worse. Data from the Global Economic Indicator show that by the end of last year, Venezuela's monthly average inflation rate was a staggering 181%. This year, the Global Economic Indicator predicts that the country's inflation rate has reached 410%. The International Monetary Fund (IMF) even believes that Venezuela's inflation rate could reach 1,600% in 2017. The World Bank says that a country's monthly average inflation rate is considered hyperinflation once it exceeds 50%.

When Venezuelans finished their holidays, things got worse. In order to combat cash hoarding, the government temporarily decided to abolish the country's largest denomination banknote, the 100 bolivar. For Venezuelans, 2017 is destined to be a painful year.

Fortunately, the Bitcoin community in the country is growing. The government’s free electricity also provides a great source of income for those who know how to tinker with mining equipment. In 2017, Venezuela is still one major tipping point away from forcing a large number of people to turn to Bitcoin. I believe it is only a matter of time.

Surinam

The Republic of Suriname is a small country with Dutch as its official language, located east of Venezuela. Suriname also suffers from severe inflation, with an inflation rate of 77% and still rising. Corruption is reportedly the main factor causing this economic woes. Like their western neighbors, Surinamese citizens are ready to accept Bitcoin, with the country's smartphone ownership rate reaching 175%.

Unfortunately, there is no formal Bitcoin community in the country yet. Even though Suriname is small, once some people start using Bitcoin, it will still take time for the digital currency to spread among millions of people.

Angola

Angola is one of many African countries hit by inflation. According to official data released last year, the average monthly inflation rate in Angola was as high as 44%. The unique oil and mineral resources make this seventh largest country in Africa the most important oil supplier to China. At the same time, Angola is also the fifth largest diamond mining area in the world. Angola also has a wide mobile phone coverage rate and the quality of life of the people in Angola is much higher than that of its neighbors.

At present, Angolan people know little about Bitcoin, but some people in the country have begun to use Localbitcoins for transactions.

Argentina

Another South American country that has been mired in inflation for years is Argentina, where inflation has topped 40% for the first time in a decade. Argentina is now like back in 1990, with hyperinflation lingering.

Besides that, Argentina is a relatively advanced country. The Bitcoin community in the country has developed and Uber drivers have begun to accept Bitcoin payments.

Nigeria

Nigeria, a populous country in West Africa, has every reason to choose Bitcoin. Global economic indicators predict that Nigeria's inflation rate will exceed 20% in the first quarter of 2017. More importantly, unlike neighboring countries such as Kenya and Uganda, the booming mobile money transfer service M-Pesa in Nigeria is destined to prevent the government from putting the interests of local banks first and unfairly regulating this field.

Nigeria's mobile phone ownership rate has reached 107%, and the number of users has exceeded 150 million, which is on par with the United States. In an economy with high inflation, digital currency is unstoppable by banks and politicians, so Bitcoin will also have a huge impact on the Nigerian people.