Amidst Argentina's escalating inflation crisis, Bitcoin is gaining favor over fiat currencies, driving heightened crypto purchases and an uptick in scam activity.

According to Bloomberg, as inflation in Argentina skyrockets, Bitcoin is becoming a preferred hedge against economic instability, as indicated by data compiled by local crypto exchange Lemon Cash.

Lemon Cash's data shows a significant surge in Bitcoin transactions, approaching their highest weekly value in 20 months. This surge seems to coincide with President Javier Milei's implementation of shock therapy policies aimed at revitalizing the economy, prompting Argentinians to explore alternative avenues for financial security.

Facing an annual inflation rate of 276%, citizens are increasingly turning to Bitcoin to preserve their wealth.

In the week ending March 10, Lemon reports nearly 35,000 Bitcoin purchases, double the weekly average from the previous year. Similar trends are observed across other exchanges in Argentina. Chainalysis, a blockchain analytics firm, previously highlighted in a research report that Argentina leads Latin America in raw crypto transaction volume, estimating $85.4 billion in value received, and ranks second in the region for grassroots adoption.

As Bitcoin gains traction as an alternative investment, Argentinians are diversifying their portfolios to mitigate the impact of inflation.

However, this surge in crypto interest has also led to a rise in scam activity. Bitcoin Argentina, a local non-governmental crypto organization, reports a fivefold increase in crypto-related scams in February this year, prompting warnings from Gabriela Battiato, the organization's head of legal, about the risks associated with impulsive investment decisions in the volatile crypto market.