In Argentina, Bitcoin [BTC] broke above the All-Time High as it’s FIAT currency ‘Argentine peso’ is reeling under fears of extreme inflation. The price of Bitcoin in Argentina surpassed the previous All-Time High as it reached traded above 3,50,000 ‘peso Argentino’. In dollar terms, it means that Bitcoin is trading above $20000 in Argentina.
The price of Bitcoin [BTC] in Argentina at 5: 00 Hours UTC on 27th May 2019 is 3,92,587.47 Argentine Peso.
Josu San Martin, a Mexican investor, tweeted,
“If an Argentinian had bought Bitcoin at the highest point of the “biggest bubble in history”, in 2017, he would have been better off than leaving his money in his Argentinian bank account. So tell me again how Bitcoin is a horrible store of value.”
Reportedly, a ‘democracy discount’ weighs on the peso. The General Election in Argentina will be held on October 27, 2019. According to popular opinion, the confidence in the economy has shaken due to fears of the return of ‘orthodox’ leader Cristina Fernández de Kirchner as Deputy to President. During her term as the President, She had a substantial negative influence with her policies over the economy.
An asset manager at Amundi seemed to reiterate the fact as it told the FT about the “currency run that may occur in a short period.” The Turkish lira is reeling under similar currency fluctuations to the downside. Furthermore, even when the interest rates in the Argentinian currency with about 70%, the demand for Bitcoin in the region continues to grow.
Nevertheless, if the support towards Presidential candidate Mauricio Macri grows in the meantime, the confidence would start to creep back into the Latin American economy.
Bitcoin [BTC] broke above its yearly highs, as the price is currently looking break above $9000. Martin also emphasized on the fact the situation of the economy in Argentina is “not much different from any other Latin American currency.” Nic Carter, analyst and Bitcoin proponent, also tweeted on the issue,
This is going to start happening more and more. Sovereign currencies only depreciate over the long term. Bitcoin appreciates in the long term.
Do you think the current increase in price will continue as Bitcoin continues to grow as an uncorrelated store of value? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com