Since April, the minimum wage for workers without family responsibilities in Argentina has been ARS 38,940. The average cost of renting a two-room apartment in Buenos Aires is ARS 53,450.
A large part of the population in Argentina and other Latin American countries finds it challenging to live on their work. Few Argentines earn more than the minimum wage needed, so young people seek cryptocurrencies like Bitcoin (BTC) to save or invest.
Since April, the minimum wage in Argentina has been ARS 38,940, the lowest remuneration for a worker without family responsibilities. That should allow him to pay for adequate food, decent housing, education, clothing, health care, transportation, recreation, and other necessities.
Breaking down the basic expenses that an Argentine has to cover for living, the basic food basket costs ARS 12,108. That figure increases every month due to the growing inflation of products in the South American country.
Concerning housing, ZonaProp indicates that the cost of renting a two-room apartment in Buenos Aires is ARS 53,450 on average. That value is slightly lower than in the north of Greater Buenos Aires (GBA), where it reaches ARS 54,498. It is also well above than in the west and south, where it is ARS 37,093.
Argentines Earn Less Money Than They Need to Live
The minimum wage in Argentina is not enough to pay for the basic food basket and the average rent for a two-room apartment. Citizens need to have an income higher than ARS 65,558 for those two expenses.
Even though a couple could afford that with two minimum wages, they would not have enough for anything else. In other words, they would not be able to pay for household services, transportation, clothing, health, education, recreation, and vacations.
Many people would think that most people earn more than the minimum wage, but that is not true. The latest INDEC report indicates that the average monthly income per person in Argentina is ARS 32,192. According to Mercado Libre, that figure is equivalent to the price of a pair of sneakers or a bicycle.
As the price of products and services has continued to rise exorbitantly, Argentines have lost reference values. For example, a barbecue for six people would cost around ARS 12,000, the same as the basic monthly food basket. Such a high cost has led citizens to lose that traditional custom.
Young Argentines Seek Bitcoin to Face Economic Problems
Due to the difficulty of living independently, young Argentines usually live with their parents in a house where they do not pay the rent. In that way, some can save or invest part of their earnings.
Exchanging the money for a hard currency is the only way to save money in Argentina and other Latin American countries. Some assets are better than others for maintaining their value than the Argentine peso, which drastically devalues over time. Examples of that are the US dollar and Bitcoin, the largest cryptocurrency in the market.
Data from the Central Bank taken by economist Nicolás Gadano indicate more US dollars in Argentina than in the United States. Citizens choose to store their savings in that currency despite the economic restrictions to buy it officially.
Argentines also stand out for buying Bitcoin to save or invest. According to Chainalysis, Argentina is among the ten countries with the highest adoption of cryptocurrencies worldwide. Citizens, mainly young people, consider that Bitcoin is more profitable than the US dollar.
By Alexander Salazar
