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Tierra del Fuego’s rise as a crypto powerhouse amid Argentina’s economic challenges
- Tierra del Fuego leads Argentina in cryptocurrency transactions, taking advantage of tax incentives and cold climate for mining.
- Lemon Wallet’s “Crypto Cup” reveals Patagonia’s dominance in crypto transactions amid economic instability.
In Argentine Patagonia, cryptocurrency adoption is particularly high, particularly in the sparsely populated Tierra del Fuego region. This area leads the country in digital transactions, largely due to its favorable conditions for Bitcoin mining. The cold climate effectively cools mining equipment, and local tax incentives further strengthen the industry’s attractiveness. as we wrote in Crypto News Flash.
Lemon Wallet, an Argentine digital exchange, tracks and ranks provinces based on cryptocurrency transaction volume. Its recent “Crypto Cup” initiative revealed that Tierra del Fuego executed 19% of these transactions, the highest in the region. This activity considering the province’s small population and harsh winters.
Other provinces in Patagonia, such as Chubut, Neuquén, Santa Cruz, and Río Negro, also show strong cryptocurrency usage. This is partly due to the high wages needed to offset the high cost of living in such remote areas.
Neuquén, in particular, benefits from its proximity to the Vaca Muerta shale gas field, where excess gas fuels local Bitcoin mining operations, adding a layer of sustainability to the energy-intensive process. to know more about it in our coverage in Crypto News Flash.
Nationally, Argentina’s engagement with cryptocurrencies is among the highest in Latin America, with 18.9% of its population reported as users. This is largely due to an attempt to mitigate the impact of severe inflation, which reached 211% last year.
Argentinians strongly prefer dollar-linked stablecoins such as USDC and USDT, which account for 60% of cryptocurrency purchases in the country. This preference helps protect their savings from the volatility of the Argentine peso.
Patagonia is a central mining sector in the Argentine Bitcoin market, not only due to its mining capabilities, but also due to the growing dependence of its residents on digital currencies as a hedge against economic instability. The region exemplifies how geographic and economic challenges can catalyze innovative financial practices, positioning Argentina as a pioneer in the global cryptocurrency market.
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