Bitcoin Trading Volumes On the Surge Amidst Argentina Inflation Crisis

Inflation in Argentina is pushing for higher adoption of Bitcoin. Argentinians are purchasing huge amounts of the cryptocurrency. The wide usage could, therefore, hedge against the nation’s unstable economy. Argentina and a number of South American States are witnessing huge purchasing volumes for Bitcoins. Argentina’s central bank recently confirmed its position to diversify into Bitcoin trading.

Mismanagement of monetary policies is a major cause of the country’s recession. Hiking the base interest could solve the situation and probably save the moment. The move could help leverage the collapsing monetary policy.

Argentina’s Financial Crisis

Argentina’s economy constantly seems to be on a boom and recession curve. On occasions, the country has faced a financial crisis while other times it’s a stupendous escalation. The economic situation in Argentina almost seems short-lived, making it almost impossible to come up with a lasting financial solution. The perilous deterioration of the Argentinian Peso results from surging interest rates in the USA and severe drought. The peso dropped by a significant 35% below the US dollar. The estimated inflation rate currently sits at 25%.

By the end of 2017, the country’s economy was doing well with a GDP growth of 3.5%. A monetary vacuum due to low-interest rates resulted in the growth of the GDP. Drought and high-interest rates in the United States led to the economic deterioration in 2018. In a bid to counter the crises, Argentina’s president Mauricio Macri introduced few budget cuts, as well as hiking of Bitcoin’s base interest to 60%.

Bitcoin Trading Patterns In Argentina

Analyst data shows that cryptocurrency performance in South America is facing massive acceptance. Bitcoin markets in Both Argentina and Venezuela perform around $6,556.89 while the prices in the rest of the markets seem to be below $6,000. Rampant currency difficulties face both countries and it seems Bitcoin could be the savior. Coin dance reported the pesos in trading today exceed a valuation of six million. The people’s high purchasing power and the Central Bank’s move to diversify into Bitcoin currency reserves will push for higher Bitcoin prices. These reserves could counter in part the economic mal activity that stems up from the USA’s reprioritization of the federal system.

The weekly trading volumes have escalated to almost $7 million. Inclusive of two trading platforms, Peer to Peer Exchange (P2P) and Localbitcoins. Crypto companies have also established 8,000 BTC pay stations around convenience stores. Buenos Aires Mall confirmed the operation of its first Bitcoin ATM. The ATM is said to be the first of 12 that will be established at the airline mall.

Closing Remarks

Argentina sees BTC as a more convenient and stable currency than the Peso. Argentina is among South America’s wealthiest nations despite a number of huge economic depressions during the 90s and the recent one in 2018. Investors have expressed great doubt in the country’s peso to the extent of converting their monetary wealth into BTC reserves. The nation has also eased BTC regulations in the country. The eased regulations have facilitated the establishment of Crypto processing ATMs in the country.