Bitcoin Trades On The Rise As The LKR Plummets
Posted 21,April

By Chehan Jayasuriya

In Local News

Listen to the Article

No Audio File Selected/Uploaded

 1,754 views

Bitcoin trades in Sri Lanka are on the rise, while the Sri Lankan Rupee has become the worst-performing currency globally, lagging even the Russian Rouble.

The Sri Lankan rupee has dropped to an all-time low as the country is going through one of the worst economic crises of its history. The Rupee has depreciated over 30% against the US Dollar as the country faces issues related to low foreign currency reserves, namely fuel, food, and medicine shortages.

Sri Lanka is not alone when it comes to facing staggering levels of inflation; the US, UK, and Denmark are all seen dealing with record levels of inflation.

Bitcoin has been used as an alternative to hedge against inflation before, specifically in cases such as Venezuela and Argentina.

The narrative that Bitcoin can be a good asset in times of crisis is often used by pro-crypto supporters. When difficult situations arise, the asset can be used as a good hedge and help families purchase essentials.

Entrepreneur Peter Thiel has also spoken of how cryptocurrency prices prove that inflation is a concern. Those concerns will not end anytime soon, as 2022 looks like it could be a rough year for traditional markets.