Fiat currencies crisis is spreading like wildfire all over the world, the latest ones are Indonesian Rupiah and Argentina’s peso. Meanwhile, Bitcoin keeps on growing its presence with rising demand and circulating supply.
Currency crisis on rising across the globe, Indonesia & Argentina feeling the dread
Fiat currencies are not at all doing good around the world. Every day that passes, fiat of one country or other is hitting the rock bottom. We already know the condition of Iran’s Rial, Turkey’s Lira and Venezuela’s Bolivar.
Now, Indonesian Rupiah is losing its value as it drops down to its lowest since the Asian financial crisis. In 20 years, it is the lowest Indonesian Rupiah has fallen against the US dollar. Despite the Bank Indonesia raising its interest by 125 basis points, the rupiah dropped 8.7% since the year beginning.
Though the Indonesia rupiah has been falling since the start of year amidst the trade war between the US and China, the decline gathered speed with Argentine Peso plunge.
Argentina is yet again struggling with the financial crisis as its currency declines another 15% against US Dollar despite the country’s central bank raising the interest rate 60% to stop investors from pulling their money out of the country.
Latin America’s third-largest economy is raising the hackles of the investors as the concern over the country defaulting to repay the heavy government borrowing rears its ugly head. Just recently, President Mauricio Macri appealed IMF for quicker release of $50 billion loans. Argentina’s peso has hit 38 pesos against US dollar while its inflation rate is 25 percent.
Meanwhile, Bitcoin is creating its strong presence
While fiat currencies are dropping down right, left and center, Bitcoin is slowly creating its place at the world level. Now, Bitcoin is leaving behind the currencies in the form of fiat coins and banknotes in circulating supply as shared by a crypto enthusiast, Kevin Rooke, on Twitter:
This certainly made for an interesting conversation over the Internet as one Redditor shared,
Cryptocurrencies, especially Bitcoin has been gaining substantial weight globally as a safe haven against the currency and economic crisis, so Bitcoin adoption rate just might take a hike as well.