Over the last few months, unemployment has risen in Spain, one of the European countries with the highest inflation rates. After observing inflation from afar by analyzing other countries, an imminent recession leads Spaniards to seek cryptocurrencies to maintain their purchasing power.
Spain has achieved worrying inflation levels over the last few months, a process that seems to be growing. Recent data shows that the European country has exceeded two digits, reaching a new record of 10.8%.
Since Spain is a tourist destination, it usually has higher hiring levels in the summer. However, unemployment has risen this season as the number of affiliates dropped in July, which had not happened for 21 years.
Joaquín Pérez Rey, Secretary of State for Employment, recognizes that the international context has led to poor results. The official considers that the labor market cannot remain shielded from what happens in other nations.
Alternatives to Face the Drop of the Global Market
Widespread inflation is plunging Europe into a deep crisis, which its citizens have not seen since World War II. Several factors influence the economy and its performance, affecting those countries with a weak economic and geographical position.
Europeans have partially come out of a global pandemic, which almost paralyzed the economy. That led various industries and employees to see their assets weaken while central banks issued high amounts of banknotes to address the crisis.
The damage to the supply chain caused a high imbalance between demand and supply, increasing prices. After that, the Russia-Ukraine conflict plunged the economy into prolonged uncertainty, breaking any previous analysis.
Europe shares borders with Russia and depends heavily on the energy it supplies. The current situation affects the cost of electricity, the basis for prices to rise or fall. There is fear and stupor due to the uncertain outcome, causing the markets to suffer from high volatility and sharp drops.
Inflation as a New Problem for Spaniards
Spaniards used to think of inflation as a satellite problem, as they observed it from afar by analyzing countries with new dismal results. The issuance of high amounts of euros and an imminent recession create the need for alternatives to avoid losing purchasing power.
The start of the war between Russia and Ukraine did not affect cryptocurrencies as other markets. However, their performance has also dropped due to the current global events. However, the price of Ether (ETH) has had one of the best behaviors over the last few weeks.
The use of crypto assets plays a relevant role, which countries undergoing economic crises have confirmed. Many people have turned to them due to the COVID-19 pandemic and the invasion of Ukraine. They allow paying for products and services regardless of international restrictions, observed among Russian citizens worldwide.
Bitcoin (BTC) is trading at around USD 23,856 and has accumulated a 3.5% loss over the last week. While its daily trading volume is above 27.61 billion, its market capitalization is about USD 456.12 billion, according to CoinGecko.
By Alexander Salazar
