Argentina Nearly Doubles Bitcoin Trading Record in Just A Weeks

Argentina, a once very promising country economically seems to be heading in the long direction. Recently, a very crucial move by the Argentine government to meet the international creditor seemed to hit the wall. However, in the midst of all this cryptocurrency has gained popularity over a very short period of time. Specifically, bitcoin in just a week managed to almost hit double the trading volumes.

According to the report by a peer-to-peer (local bitcoin), the trading volumes are exploding. In just one week, bitcoin trading volumes moved from 69million Argentine pesos to 101million pesos. This is keeping in mind that the growth in volume over the last month has; though not rapidly, been growing steadily.

Analysts warn that the numbers will get bigger considering the country has not yet resolved the debt issue. With both hit by the covid19 and the mismanaged national debt, the financial crisis might stick around for longer. Internationally the country has a debt of $65b cumulatively.

Considering one dollar is exchanging at around 70 Argentine pesos, the volumes grew up to roughly$1.4m. This is an equivalent of about 150 bitcoin. And since Bitcoin is currently trading at $93000, the $1.4m would be an equivalent of150 bitcoin.

How bad is it for Argentina?

In a video, Antonopoulos says he believes investing is bitcoin would be much better than Argentine pesos. Answering a question on whether investing in bitcoin is the way to go, He said:

“It depends on which country you are in… If you are in Argentina, any percent of wealth you put in bitcoin did far better than Argentinian money every single year in the last 7 years. Even in the worst years of bitcoin somehow Argentina’s economy was doing worse… If your country is experiencing 45% inflation, then crazy bitcoin volatility seems like a rock-solid investment…”

Right now the financial crisis has worsened to the point of comparing it to the Zimbabwe and Venezuela. Additionally, even after planning to meet with the international creditors to try and restructure loans, it somehow did not happen. As a result, people are looking for other ways to retain their value. This way Bitcoin is slowly becoming a safe haven.

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Author: Simon Njenga

Crypto analyst and Author

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