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The bitcoin price is at an all-time high in Argentine pesos

May 8, 2020

Recently Bitcoin’s price exceeded one million Argentine pesos. To learn more about the economic situation in Argentina and the behavior of the BTC in this scenario, Cointelegraph spoke in Spanish to the economist Nicolás Litvinoff, Director of Estudinero.org

“Bitcoin has exceeded a million pesos, and this clearly has to do with the situation in Argentina. Bitcoin has historic records in Argentine pesos, while it is still 50% below the historic maximum in dollars before it was halved to do The devaluation of the Argentine peso against the dollar is causing Bitcoin to peak in pesos. At the same time, it only confirms that Bitcoin is an excellent backup to maintain the purchasing power of the money, “said Litvinoff.

On the other hand, he pointed out that BTC is a very good refuge in inflation countries like Argentina or Venezuela. Beyond these two countries, however, he made it clear that inflation is not so present today worldwide, but could reappear in the medium term due to the monetary policy policies implemented by the central banks.

The bitcoin price is at an all-time high in Argentine pesosThe bitcoin price is at an all-time high in Argentine pesos

“This is an economic problem in Argentina. But for example Bitcoin in Venezuela will surely be at record levels in Bolivar as well. It is something the inflation countries have, “he said.

When asked whether the restrictions on buying dollars in Argentina are more people interested in Bitcoin and cryptocurrencies, he replied: “The fact that there are so many restrictions on buying dollars in Argentina is one of the ingredients that increases interest in cryptocurrencies or Bitcoin. Another problem is that real interest rates in Argentina are currently negative. This also leads to a stronger tendency towards cryptocurrencies as a value preservation and as an investment alternative.“”

Then he made it clear: “That real interest rates are negative is a phenomenon that occurs in Argentina, but also in powers like the United States. There may also be an increase in attention or demand for Bitcoin on this page. “

And later he added: “But yes, in Argentina the issue of restricting the purchase of dollars is a factor to consider. It is a cocktail. Because we have to add a very restrictive monetary policy to the inflationary trend we talked about earlier. They limit the savings menu. And Bitcoin seems to be a way to get around these restrictions and have a valid option with a good long-term investment forecast. “

Bitcoin halves

The Argentine economist also commented on what is happening due to the proximity of Bitcoin’s halving, which seems to be getting closer and faster.

“”The previous two Bitcoin halves had a technical parameter that is very similar to what is happening now. BTC started rising about a year before halving and continued to rise to a year and a half or a year after halving. And that is happening now. The BTC saw an increase of 130% when we look back over a year, “he described analyzing past events.

And he said: “Everything seems to indicate that if history repeats itself, BTC will not only rise before halving, but practically a year or even a little longer after halving. This has to do with the scarcity that is characteristic of Bitcoin. ”

A no less important fact that Litvinoff mentioned is the following Bitcoin’s emission rate will drop below two percent for the first time. This is considered normal inflation in most powers. “Inflation is much higher in Argentina, but when it comes to dollar inflation, it usually takes two percent and the BTC emission rate will fall below it. So there is a decoupling between what is happening in the rest of the world spending dollars, pounds sterling, yuan, euros, and this halving, which is exactly the opposite, which helps investors understand the importance of this opportunity to invest in BTC, a decentralized, deflationary system that works against Censorship is resistant and has the other properties that Bitcoin knows, “he concluded.

Reaching the million Argentine pesos

On April 29, Cointelegraph reported in Spanish that Bitcoin had already reached a historical value of around one million pesos in that country due to the devaluation of the Argentine peso. According to the comparison site Coinmonitor.info, the million pesos is a number that has been exceeded in some stock exchange houses that enable the purchase and sale of BTC in Argentina.

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