After Argentines showed strong support for Javier Milei, winner of the presidential primary, Bitcoin reached a new price record in Argentina. At the time of writing, BTC is trading for 21 million pesos.
In comparison, the cryptocurrency was worth 15 million pesos in June 2023, even before Milei, the pro-Bitcoin presidential candidate, emerged as the favorite candidate of the Argentine people.
Against the dollar, Bitcoin has remained virtually stable in the $29,000 region for at least two months. While it is far from the USD 69,000 top, BTC is also far from the USD 16,000 bottom.
Bitcoin Reaches New Highs in Argentina
Devastated by inflation, the Argentine peso continues to lose value against other currencies and products. Therefore, Bitcoin can act as a safe haven for citizens who want to maintain their purchasing power.
Bitcoin traded for 6.5 million pesos in August last year, according to Ripio data. Exactly one year later, Bitcoin is now at 21 million, an increase of more than 300% for that period.
The change in the exchange rate is accelerating due to the elections. On the one hand, the old policy keeps markets from expecting peso recovery. On the other hand, the future of weight may be doomed, but for the greater good.
Javier Milei can kill the weight but save Argentina
Javier Milei, the candidate with the most votes in Argentina’s presidential primaries, describes himself as a minarchist. That is, it argues that the state should exist, but its size should be as small as possible.
One of the main targets of his criticism is precisely the Central Bank of Argentina. On the other hand, Milei points out that Bitcoin would be a protection against the devaluation of the Argentine peso.
“The Central Bank is a fraud, it is a mechanism by which politicians rob the good people with the inflation tax”noted Milei recently. “Bitcoin represents the return of money to its original creator, the private sector.”
“States usurped the exclusivity to be able to spend [dinheiro]. Forced course let politicians rob you with the inflation tax. Bitcoin will hit a limit and it will stop being spent, and it can compete with other currencies, as it competes with Ethereum and others.”
The next president of Argentina explains 👇
Central banks are a scam. THE PEOPLE just need to WIN with the #Bitcoin pic.twitter.com/0gcNDJZrPV
— Paradigm Education (@ParadigmaEdu) August 15, 2023
In other words, Milei could encourage the use of other currencies in Argentina, including the dollar, cryptocurrencies and even the Brazilian real if chosen. Therefore, this explains Bitcoin’s rise against the Argentine Peso, with the market fearing a general shutdown of a currency doomed to fail.
Milei’s opponents don’t have painless exits either. With interest rates already above 100%, it is hard to imagine anyone succeeding in saving Argentina’s national currency.
In the end, Milei may be about to kill the Argentine peso once and for all, but save Argentina and the Argentines themselves, who can choose a better currency. At the same time, some US presidential candidates also have a similar view to Milei, i.e. we may be at the beginning of a major global currency shift.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
