Struggling Argentina Turns to Bitcoin for Help as Peso Depreciated By 70% Over the Past Half a Year
Argentina is on the rocky road to recession as a spiraling currency crisis grows. Since the beginning of 2018, the Argentine peso has depreciated by 70% against the U.S. dollar, becoming the worst-performing currency in emerging economies.
Against this backdrop, Argentines are trying a variety of self-help methods, but the most popular way is buying cryptocurrencies. Although bitcoin price has dropped over 50 percent since January, it is widely accepted in the Latin America’s third-largest economy that bitcoin price is likely to go even higher in the future, while the peso will continue to fall.
Argentinians believe this peer-to-peer electronic cash system created by Satoshi Nakamoto runs through an autonomous software software program that does not rely on the government or any organization. The government could print extra money, but the bitcoin system will not.
Maria ,a 32-year-old teacher in Buenos Aires, gets a monthly income of 35,000 pesos (around $1,200 USD). Due to the rising costs of rent, utility bills and babysitter wages, she suffers from a huge financial burden. Therefore , she put all her remaining wages in bitcoins and successfully convinced some of her friends and family members to buy the largest cryptocurrency after she herself has a better understanding of bitcoin through discussions with community members and crypto courses.
Maria hopes to survive the ‘economic winter’ with cryptos.
“ The number of digital currency buyers is growing substantially in Argentina now.” Manuel Beaudroit, co-founder of the cryptocurrency exchange Bitex told the local media,“ Buenos Aires ranks among top 10 cities across the globe in terms of cryptos trading volume.”
At present, Bitex has 200,000 to 300,000 Argentinean users. Beaudroit asserted that the Argentine’s favorite cryptocurrency is bitcoin, followed by Ethereum, and Litecoin.
Haves and have-nots in this country are all obsessed with cryptocurrencies. Argentina has seen the emergence of more and more exchange trading platforms since the end of last year,including Bitinka、ArgenBTC、Ripio 和Satoshi Tango.
Argentina’s government shows a friendly attitudes toward cryptocurrency, without putting the lid on it. In 2017, Argentina’s central bank allowed two banks to participate in cryptocurrency tradings. Besides, it’s reported that the country is planning to offer bitcoin futures in the futures market.
Many people predict that in the second half of 2018, the cryptocurrency market will bounce back slightly. Argentines might breathe a sigh of relief then.