Amid The Economic turmoil Bitcoin achieves ATH against Argentine Peso
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Amid The Economic turmoil Bitcoin achieves ATH against Argentine Peso

written by John Murphy | April 26, 2023

Argentine Peso has witnessed a significant devaluation of 99% against the U.S. Dollar. This currency crisis started back in 2018.

KEY TAKEAWAYS

  • The Argentine Peso devalued by 99% against the U.S. Dollar.
  • Bitcoin has now reached a record All-time High value in the market. As it is becoming a more reliable option for the citizens

Now even the Price of Bitcoin has reached new heights in Argentina due to increasing inflation in the country. This happened after the price of Bitcoin hit $29,736 in the crypto market.

This indicates that Bitcoin may become more valuable for Argentinians as a means for saving and investments after the devaluation of the local currency. Many people are turning to alternative investment options like Bitcoin in Argentina despite their attempts to control inflation and stabilize the economy,

Such circumstances show how Bitcoin is an attractive option for people in countries that are going through economic turmoil.

BTC’s price is at an All-time High.

Due to persistent inflation in Argentina, the value of the Argentine Peso has been going down. According to the data from Google Finance, on 18th April the exchange rate of BTC to ARS crossed over 6.59 million ARS.

Therefore the growth of Bitcoin in the market is attributed to the devaluation of the local currency Peso in Argentina. Moreover, the traders are paying hefty amounts on the black market to buy US dollars. This is because the official spot rate pays only half of the black market rate.

This has also led to a drop in the Argentine Central Bank’s reserves to an estimated value of $1.3 billion since 2019. This further raised the risk of devaluation of Peso.

The Argentinians are forced to look at alternative investment options. to traditional government-backed currencies. This is happening in other Argentine-like countries with economic stability as well.

The peer-to-peer weekly volume of Bitcoin reached a record all-time high in Argentine on the Paxful exchange. This demonstrates the increasing demand for Bitcoin among citizens. Also, it was deduced from a study that most of the citizens of Argentine think that Bitcoin may be used as a mode of savings in the long-term.

Coinbase has also recommended adopting Bitcoin as a legal tender in the country instead of Argentine currency. This will give the citizens greater access to Bitcoin.

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