As the price of the Argentinian peso is dropping, Bitcoin has touched an all-time high, Financial Times reported. 1 bitcoin is now worth 394,000 pesos, outdoing the earlier high hit throughout the cryptocurrency growth of 2017.
Josu San Martin, a Mexico City-based crypto investor tweeted:
The Argentian market is in a mess. Throughout the last 12 months, the country’s currency peso dropped more than 50% against the American dollar. According to the Organisation for Economic Cooperation and Development, the Argentian GDP will decrease by almost 1.9% in 2019. In such an atmosphere, it is not a shock that Argentinians are using BTC, particularly before this year’s presidential polls that might increase the country’s federal disaster.
The peso has dropped despite the Argentinian central bank’s capacity to apply IMF reserves to maintain the price. An asset manager at Amundi appeared to restate the point as it narrated the FT about the “currency run that may occur in a short period.” The Turkish lira is staggering below alike currency variations to the downside. Moreover, even when the interest prices in the Argentinian currency with about 70%, the need for Bitcoin in the country remains to improve.
As a totally different asset class, Bitcoin is still resilient. Although, in the long run, Bitcoin is demonstrating to be valid and quickly recognizing store-of-value than gold, even further so in a digital market. To protect the declining economy, President Macri has previously got a word to bear Bitcoin in mind. In March 2019, famous investor Tim Draper persuaded him that to bring international investors he must reconstruct Argentina’s market and reinstate its peso with Bitcoin.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.