Argentina Trades More BTC Than Ever In Hard Times

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With the world still reeling from the effects of the coronavirus COVID-19 pandemic, some countries were hit harder than others. Argentina, for example, entered its 9th sovereign debt default. At the beginning of May, the country was headed straight for bankruptcy and a few months later the direction remains unchanged.

The South American country braces for its worst financial crisis in history. But at least something positive came out of it. During the financial crisis worsened by lockdowns, Argentina experienced a surge of Bitcoin trading. New records were set in BTC trading every week. The latest record was achieved last week when nearly $1.5 were traded in Bitcoin. That’s 101 million pesos which is almost double the previous record that was set at 69 million pesos.

Bitcoin Trading in Times of Crisis

The South American country has set a new record in Bitcoin trading last week. This means that people no longer believe in banks and the Argentinian Peso. The financial system of the country is failing for the 9th time so there’s definitely something very wrong. Governments have promised to set the record straight several times, yet Argentina is bracing for its worst financial crisis yet.

Of course, the crisis was deepened by the coronavirus pandemic, but the fact remains that the South American country is having trouble with fiat money. Although Bitcoin is not legal tender in Argentina, there’s no ban on cryptocurrencies. People can trade Bitcoins since it is not illegal by law. This has led to an increased volume of Bitcoins traded which could help Argentine citizens to pass through these hard times. At least the ones who own Bitcoins.

Traders in the country are seeking safe haven assets as the financial crisis worsens. New president Alberto Fernandez promised miraculous results and stronger economy, yet he has failed to set the record straight. It is obvious that the country is in dire need of change, but healing from the latest crisis would take years if not decades.

If the government would consider it, Bitcoin may end up being the savior Argentina needs. Of course, the Central Bank will put up a fight since we know how much banks hate cryptocurrencies.

Massive Spike in Bitcoin Trading

Bitcoin has been gaining ground as a great alternative to the Peso. There is now an informal indicator known as Bitcoin dollar in Argentina that provides an approximate price of the dollar based on the cost of Bitcoin in local markets. If the local economy is thriving with Bitcoin during the financial crisis, why shouldn’t the government try to stay afloat with it?

Many industries such as Bitcoin casinos are reaping the benefits of the cryptocurrency right now. There’s massive potential in the leading cryptocurrency in the world and the pandemic has shown the world that fiat money is no longer the only viable financial option. The increased trading BTC volume in Argentina is an indicator that people are already turning toward alternatives and we’re hoping that other countries around the world will soon follow suit.

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July 8, 2020: • No Comments

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