The crisis in Argentina continues to push its population towards alternative assets such as cryptomorphs. There, the price of Bitcoin is already worth about 2 million Argentine pesos, a record.
However, it is not only the Bitcoin that values there, with the dollar also being a rising currency. The dollar price also follows the historical high, showing that the population avoids the state currency.
It is worth mentioning that the Argentine peso, like the Real, for example, is a fiduciary currency. In other words, there is no ballast in the currency other than the population’s confidence in the payment system.
Over there, both inflation and currency devaluation are major concerns.
Bitcoin is already worth 2 million pesos and reaches a new record: capital flight and companies?
The Argentine crisis continues to lead its population to take drastic measures with its capital. Living a great problem of inflation, the price of Bitcoin has skyrocketed in Argentina.
It is worth mentioning that the fear is so great that a unit of Bitcoin is already worth 2 million Argentine pesos (ARS). This value is even the largest ever recorded for digital currency in the country.
According to the CoinMonitor website, which shows the BTC/ARS rate in real time, the week starts above 1.9 million. That is, the rate continues to register a 3% increase in the last 24 hours, with some brokers already registering 2 million per Bitcoin.
The population of Argentina is known for the capital flight, mainly to the dollar. Besides, the country’s companies have been seeking to leave the territory, with some already seeking refuge in Brazil.
There is the fear of uncontrolled inflation, which is already one of the highest in the region. The exchange devaluation is one of the biggest in the last year, pressuring the population for alternative assets, such as cryptomoeda.
Bitcoin valorization in face of the Real is greater than in face of the Peso
Although the Argentine peso is one of the most devalued currencies in the world today, in relation to the Bitcoin the situation is a little different when compared to the Real. That’s because, considering 2020, the Real had a devaluation against the Bitcoin of 121%.
The Argentine peso lost „only“ 106% in relation to the Bitcoin in the year. It is worth mentioning that Bitcoin has been on the rise since last weekend, surpassing again U$ 11600 per unit.
The Bitcoin’s upward movement has led the value of the currency in Argentina to a new historical high. In Brazil, with each Bitcoin worth almost R$ 64 thousand, the price is close to the historical high, currently of R$ 68 thousand.
With the crisis of the new coronavirus many emerging countries are going through difficult times, with their currencies increasingly undervalued. In addition, governments are trying to prove that they are still capable of making the best decision.
However, Bitcoin, as an alternative and value reserve, has proved promising.