DeutschCurrently, some industry experts are speculating about the consequences of Brexit for the Bitcoin course. It will be some time before there are results for the EU crisis. The example of Argentina impressively shows the opportunities that economic and political crises can have for the crypto market and, above all, Bitcoin. In the country, the BTC course presents itself in top form for several reasons. More and more investors there are discovering Bitcoin and altcoins as protection against the rising inflation rate and the generally prevailing economic crisis. The course recently experienced a dramatic upswing in the local stock exchanges of the South American state. The course temporarily climbed significantly above the $12,300 mark. And it got even better. It was none other than the country’s central bank that triggered the next massive upward trend with its already announced Bitcoin ban.
According to Coin Dance, the Argentinian market (and also the Venezuelan market) recorded the largest trading volume in Bitcoins since the start of the first digital currency. Never before have so many BTCs been traded on the market as in the past week. Paradoxically, the coin owes its increasing popularity and new trading records to the lack of acceptance on the part of the top currency watchdogs.
Significantly Stronger Developments than on the International Market
In a direct comparison with internationally positioned crypto exchanges, the development corresponded to a price that was around 25% higher in the country. There, the course was largely in the range between USD 9,000 and USD 9,500. On platforms such as Reddit, an even higher converted course was temporarily circulating for positions that were created in the local currency, the peso. Current forecasts indicate that the coin will most likely be able to continue this historic high. The problems in the country are too serious for citizens to regain confidence in the domestic financial system any time soon. In particular, young Argentinians are increasingly relying on crypto investments to protect their savings from rampant inflation.
Central Bank Prints Massive Amounts of Fresh Money – Bitcoin Benefits
Worth knowing: Not only is the pure Bitcoin course experiencing an extremely good phase in Argentina at the moment. The pure trading volume of the first and still most important cryptocurrency also recently reached a new all-time high. This meant that the price clearly left its exemplary level from the summer behind. The country’s government has laid the foundation for success in many ways. The non-functioning measures against an inflation rate that has now clearly exceeded the 50% threshold is just one example of the developments. Rather, the Argentinian central bank is putting the market under even greater pressure by printing additional money. In its own assessment, this is the only way the country can reduce its considerable foreign debt. Residents of the country are now only allowed to withdraw or exchange a limited amount of money. A limit of 200 US dollars is now circulating here as the upper limit.
Argentina and Bitcoin: Purchases No Longer Allowed with Credit Cards
And another piece of news is fueling current interest, so that many people who may have been hesitant in the past are also buying Bitcoin. It is currently being said from various sources that the government has now prohibited Bitcoin transactions using credit cards. Due to the paternalism, such bans and sanctions often lead to activism among some prospective investors out of pure defiance. Interestingly, crypto enthusiasts such as Tim Draper have even advised in the past to gradually convert Argentina’s national currency to Bitcoin. The government under President Macri even considered a state cryptocurrency for a while. Similar to Venezuela, where plans for the digital currency “Petro” are probably on hold for the time being. In recent months, there has been repeated positive news regarding Bitcoin acceptance in Argentina.
In some places, road users can pay for bus tickets or subway tickets in Bitcoin. Trade also increasingly accepted payments in digital currencies. In general, the country seems to want to move away from cash more and more. Like several neighboring countries in South America, by the way.
Argentina: No. 1 Crypto Location in South America
The fact that Argentina could become a kind of trendsetter for cryptocurrencies and blockchain technology in the region is also increasingly being recognized by some companies in the industry. The well-known Huobi exchange announced this week that it intends to build and open a computing value with an investment volume of 100 million US dollars. The operator confirms its instinct for growth markets within the industry. For the exchange CEO, the country is “South America’s most promising market for the blockchain”. Most observers agree that Argentina is becoming more important for Bitcoin and the crypto sector as a whole. How quickly the market in Argentina will continue to develop ultimately depends on the course of the state recession.
But even if the economy of the severely battered country should recover faster than expected, the demand for Bitcoin and Co. will most likely be stable. For the time being, however, the ongoing economic crisis will ensure that investors place their hopes in Bitcoin.
Part 2: China and Bitcoin
Part 3: Russia and Bitcoin
Part 4: Germany and Bitcoin
Part 5: USA and Bitcoin
