In Argentina, the Bitcoin course in ARS (Argentine Peso) has broken its all-time high. According to Coingecko, the current Bitcoin price is over 389,000 ARS per BTC. In December 2017, when BTC peaked, the price was around ARS 340,000 per BTC. Many media now reported that the Bitcoin exchange rate in Argentina would be converted over 20,000 USD and has thus reached a new all-time high in USD. The current ARS rate was probably not taken into account.
Bitcoin price reaches all-time high in ARS
The economic situation in Argentina is more than dramatic. Although the situation in Venezuela is not yet quite as good as it might be, the local people are still struggling with an extreme depreciation of the national currency. In the last 5 years ARS has suffered over 68% depreciation against USD. Last year alone brought a loss of over 45%. This hyperinflation is making alternative investments increasingly important. Above all, Bitcoin is getting more and more attention.
Although the Bitcoin price has reached the all-time high in ARS, in the same time the ARS/USD price has fallen by more than half. Therefore, also in Argentina the Bitcoin price is not much different than on other international crypto exchanges. Accordingly, this statement is not quite correct. However, the increased demand in the Latin American countries cannot be dismissed.
Interest in Bitcoin and crypto currencies continues to rise
The confidence of the Argentine population in their own government seems to be declining further. Many fear a possible return of the “orthodox” Cristina Fernandez de Kirchner. During her term as president, she had a considerable negative influence on Argentina’s economic policy. Hence the strong demand for Bitcoin and other crypto currencies.
- Josu San Martin also stressed that the economic situation in Argentina “is not significantly different from any other Latin American currency”.
- In Argentina, however, confidence in its own economy could decline if support for the presidential candidate Mauricio Macri continued to increase.
Bitcoin as an alternative to state investments
Although governments have many opportunities to influence the exchange rate of their own currency, the influence is of course limited. The loss in value continues to increase as a result of an uncontrolled or rather intransparent money printing company, which is mostly used to pay off the incredibly high debts. This is certainly no different in most other countries. Europe and the USA also have similar monetary policies. This is only possible because of the strong economy.
Bitcoin was also the answer to the economic crisis of 2008, when our dependence on individual companies or governments became clear. Millions of people have suffered as a result of wrong decisions made by individuals. Therefore Bitcoin is not only a good investment for the future due to a possible increase in value, but above all an alternative to state-controlled investments.
You can rely on Bitcoin, not on sensible decisions by our governments.