Today, Argentina’s inflation is no laughing matter and prices change every day. That means it’s fertile ground for bitcoin and crypto adoption. “The central bank has repeatedly warned about the risk of investing in volatile digital currencies, and some adopters are taking it cautiously,” says Reuters. Once in a blue moon, the mainstream media reports on bitcoin and crypto in a relatively positive light, and Argentina inspired one of those rare articles.
According to Reuters, “crypto penetration in Argentina was at 12%, about twice the level of Mexico and Brazil.” The possible reason is that the peso “depreciated 14% this year against the dollar” and “annual inflation rose to 58% in April and could go as high as 70% this year.” Not only that, Argentina is under “capital controls limiting foreign exchange to $200 per month.” Therefore, there is a huge incentive to seek refuge in bitcoins and stablecoins.
From Argentina: Café Owner
In the port of Buenos Aires in Puerto Madero, Crypstation cafe was recently opened. Screens show “real-time cryptocurrency price quotes” and accept bitcoin and crypto. Reuters quotes one of Crypstation’s founders, Mauro Liberman:
“The local environment is pushing people to protect their capital in cryptocurrencies so we see the growth accelerating. Throughout Latin America the potential for growth is enormous. It is an avalanche that will not be stopped.”
From Argentina: The IT Specialist
Another interviewee is Victor Levrero, “an IT specialist in the province of Buenos Aires” who “puts his spare savings into stablecoin and bitcoin every month after using his $200 quota to convert pesos to dollars.” He told Reuters he doesn’t even bother with banks anymore:
“Basically, it’s because I lose less. With Argentina’s inflation between 60-70%, and fixed terms paying 30-35%, it doesn’t work.”
BTC price chart for 09/20/2022 on Bitstamp | Source: BTC/USD on TradingView.com
From Argentina: The Self Employed Computer Technician
Although he is into computers, Marcelo Vila only has “a small amount invested in bitcoin and ether”. He is proceeding with caution, as all newcomers should:
“The idea is to increase the percentage of funds invested in crypto. But until I get to know the crypto market, I can’t put a lot of money into it.”
From Argentina: The Home Miner
The fourth subject is Sebastian Carsorio, who comes from a poor neighborhood and “wants to dig himself out of poverty using a homemade cryptocurrency mine he put together with recycled computer parts from his work.” great.
“I fixed the things and put it together on a computer,” he told Reuters at his home, where he has screens showing how the mining is going. He started with Ethereum and then bitcoin – which allowed him to buy some land and go back to school.
“I will continue mining because it is a good way to save,” Carsorio said, explaining that he gets a better exchange rate for pesos than on the street. “When money is scarce, mining has saved me many times.”
How many Argentines could say something similar? Bitcoin and crypto are taking over the country because people want them. The deal signed by the government with the IMF who specifically asked them to discourage the bitcoin industry in Argentina can only do so much. People need a refuge from inflation and cryptocurrencies provide it, it’s as simple as that.
In recent news that shows the adoption of crypto, Bitfarms recently started the engine on their new bitcoin farm in argentina. For her, the government of declared Mendoza wine producing region that they will accept tax payments in cryptocurrencies.
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