After Javier Milei won the primaries in Argentina, Bitcoin started trading 20 thousand dollars in our neighboring country, with an increase of 300% compared to the beginning of the year. Today, two months later, the cryptocurrency is being traded 37 thousand dollars.
In addition to hyperinflation, an old acquaintance of the Argentinians, the elections also have consequences for the local economy. The two candidates with the most votes in the first round were Sergio Massa and Javier Milei.
Since Massa is Argentina’s current Minister of Economy, it is believed that the Argentine peso will continue to fall if he is elected. Milei even promised to eradicate the local Central Bank, that is, destroy the Argentine currency once and for all.
The second round, scheduled for November 19, promises to further shake up the price of Bitcoin in Argentina.
People are flocking to Bitcoin, says George Ball
Speaking to Reuters, George Ball states that Bitcoin has disappointed its critics who see no value in it. According to the former president of Prudential Securities, people are migrating to bitcoin because it is more reliable than their local currency.
“Bitcoin’s strength in recent weeks and months has surprised and disappointed many who view it as a worthless artificial symbol.”said Bal. “However, if you think that Bitcoin exists and is a more predictable and valuable business than the Argentine currency, or if you live in Liberia, what will happen to the entire infrastructure around you…”
“People around the world are migrating to Bitcoin as a slightly more reliable alternative to their currency.”
Argentina is not the only country where Bitcoin has reached record prices. In Turkey, cryptocurrency is traded for almost 1 million Turkish liras. In Nigeria, BTC is traded for 27 million Nigerian naira.
In countries like Venezuela and Zimbabwe, it is even difficult to know the exact value of Bitcoin. In any case, the IMF’s inflation map shows that the exceptions of countries that do not see their currencies weaken are rare.
Therefore, the lack of confidence in the state currencies, even though it is far from an ideal scenario for a rise, could be one of the many reasons behind Bitcoin’s 100% rise in 2023.
After all, as a global currency, with a maximum unit limit and without political interference, Bitcoin is proving to be a great refuge from the old inflationary practices of governments.
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.
