The devaluation of the Argentine peso makes an increase in the price of Bitcoin in this currency greater. Measured in Argentine pesos, Bitcoin’s price has increased by 284% so far in 2020.
The price of Bitcoin (BTC) has recently reached a new all-time high in Argentina due to the devaluation of the national fiat currency. At the time of writing this article, Bitcoin is trading at ARS 2,000,000 per unit on SeSocio.
Government restrictions on the purchase of foreign currencies in Argentina have recently led the price of the parallel (or “blue”) dollar to a new all-time high: ARS 167. Apart from this, there is a bullish break that keeps BTC above the USD 11,000 mark.
Websites such as Bitcoinario or CoinMonitor, which monitor the price of Bitcoin in Argentine pesos, indicate that the SeSocio, Ripio, and SatoshiTango platforms currently offer the highest price for the purchase.
Investing.com has shown charts published that follow the price of Bitcoin on the Bitex exchange. On them, the crypto asset has maintained a pronounced bullish trend, regarding Argentine pesos, with few corrections since September 9th.
This same source reveals that the price of BTC has increased by 284% in Argentine pesos so far in 2020. Last January, users could buy 1 Bitcoin for ARS 521,000.
The devaluation of the Argentine peso does not show any signs that it is going to stop or diminish. A report from the consulting firm Focus Economics predicted a month ago that the Argentine fiat currency “will depreciate sharply due to high inflation and economic contraction” in the rest of the year.
Since January, the consulting firms have not commented on the matter again. The analysts cannot make new accurate predictions about the government’s measures to stop the devaluation of the Argentine peso, while trying to stop the flow of US dollars from the banking system.
An increasing number of Argentines with savings capacity resort to Bitcoin or other cryptocurrencies to preserve their assets. According to its growth and customer support leader, Jerónimo Bernot, the number of users of platforms such as AirTM is also growing in this country.
Inflation and Devaluation of National Fiat Currencies Worldwide
There is an increasing awareness of the risk of fiat currencies as a store of value, not only in Argentina. For example, the fact that the US Federal Reserve recently issued inorganic US dollars causes price increases not seen in the North American country for a decade. The president of the European Central Bank, Christine Lagarde, also announced that she wishes Europe to follow a similar issuance path.
The person in charge of the YouTube channel “Mad Cripto MX”, recently tweeted that “one day Bitcoin will ‘go astral’ and that will, unfortunately, indicate that we are having problems.” The youtuber explained the meaning of his expression to a follower by replying that “the price of Bitcoin rises when those of the US dollar and other fiat currencies fall. That is a sign of the bad global economy that is affecting the people of each country, such as is now happening more drastically in countries like Argentina and Venezuela.”
By Willmen Blanco