Inflation in Europe hits record highs and people are preparing to buy bitcoins

Inflation in Europe hits record highs and people are preparing to buy bitcoins - 60611652Inflation in Europe hit an all-time high for the sixth month in a row, according to preliminary data from the European statistical office, Eurostat. A global problem that is hitting the continent hard and causing people to turn to investment methods, such as bitcoin (quotation BTC in real time), to cope with its impact.

Pandemic and war have raised inflation rates around the world

The agency announced that Europe's main year-on-year inflation was 7,5% in April. This is higher than the previous 7,4% rate in March and all previous rates. This calls into question the economic stability that characterized the continent, as well as the United States, which recorded a record 8,5%.

The latest inflation figures in Europe come between the escalation of the Russian war in Ukraine and the impact on energy supply. This is while concerns grow about a potential recession and supply crisis caused by China's measures. How the European Central Bank will respond is still unknown. All the more so as the IMF president expressed regret over the increase in banknote printing during the pandemic.

This context has changed the investment trends of traders, who are preferring bitcoin to a greater extent than traditional instruments. This can be seen in Spain, for example, where holdings of domestic stocks and bonds have fallen, while holdings of cryptocurrencies have increased.

The investment trend is moving towards bitcoin to fight inflation in Spain

An eToro study reveals that 43% of Spanish retailers invested in cryptocurrencies in the first quarter of 2022. This is an eight percentage point increase from the end of the previous year, when it was ahead of investments in domestic stocks (47%) and in third place are national bonds (25%).

However, this ranking changes when asked about investment preferences for the next 12 months. Cryptocurrencies now occupy the top spot, maintaining a preference of 43%, while interest in Spanish stocks drops to 30% and bonds to 15%.

Thus, the Spaniards are far ahead of the international average in the adoption of cryptocurrencies, as confirmed by the Bank of Spain this week. The government agency revealed that 60 billion euros circulate in the country. The most used cryptocurrencies here and in the world are bitcoin and ether (ETH).

Research on the stock exchange also found that even though young people are the ones who invest the most in cryptocurrencies, more and more older people are doing so. In fact, 22% of the Spaniards surveyed over the age of 55 bought cryptocurrencies, which implies an increase of nine percentage points over the previous year.