Fun

Bitcoin Transactions: New High for Argentina as Confidence in the Peso Tanks

News Feed - 2020-07-09 11:07:00

Bitcoin Transactions: New High for Argentina as Confidence in the Peso Tanks


Crisis laden Argentina saw bitcoin transactions worth $1.4 million (101 million pesos) being recorded in the past week, a new high for the country.

According to a report by Vorem, this figure is nearly double the previous high of $0.96 million recorded in the last week of June.

Citizens who have previously “watched their currency lose value are now turning to bitcoin” and those finding it difficult to “transfer fiat money to other countries” now make use of the cryptocurrency.

The Argentine financial troubles, which started in 2018, worsened following the Covid-19 induced economy lockdown.

The country’s peso currency is depreciating while the inflation rate is growing.

According to a World Bank report, issued just as the country implemented lockdown measures, Argentina’s economic situation presents a precarious balance.

The Argentine peso has lost 68% of its value since 2018. Annual inflation is over 50% and after a 2.5% fall in GDP in 2018, the economy contracted an additional 2.2% in 2019.

Already government data for the first three months show the economy shrank 4.8%. Unemployment rose to over 10% in the same period.

Meanwhile, Vorem quotes “analysts” predicting the economy to shrink by 10% by the end of 2020.

Argentina, one of Latin America’s largest economies, has faced persistent economic troubles going back several decades.

The crises are blamed on several factors including an insistence on using an overvalued currency, large scale borrowing as well as a lack of financial support by multilateral institutions.

After the crisis between 2001 and 2002, the country dollarized as it tried to restore confidence. That policy was abandoned in favor of a returning peso.

Again, prominent economists are calling for a return to dollarization but as the Vorem report suggests, citizens “might be seeking a safe haven in crypto assets” instead.


What do you think about the recent demand for bitcoin in Argentina? Let us know what you think in the comments section below.Famous Malaysian Actor Fined for Stealing $50,000 Worth of Crypto From His ProducerNEWS | 7 hours agoJohn McAfee Launches Ghost Phone Service to Supplement His CryptocurrencyNEWS | 12 hours agoTags in this storyArgentina economy, Argentine Peso, Bitcoin, coronavirus lockdown, COVID-19, crypto assets, dollarization, economists, high inflation, World Bank


Image Credits: Shutterstock, Pixabay, Wiki CommonsPurchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimer Show comments

News Feed

Luart Officially Rebrands to Arcnes as the Platform Looks to Be More Than Just an NFT Marketplace
Luart Officially Rebrands to Arcnes as the Platform Looks to Be More Than Just an NFT Marketplace press release PRESS RELEASE.Luart has announced an official rebranding to Arcnes, a
Tom Mitchelhill8 hours agoNumber of Bitcoin millionaire wallets triples in 2023Over 81,000 wallet addresses now hold $1 million or more worth of Bitcoin.5329 Total views77 Total sharesListen to article 0:00NewsJoin us on
Derek Andersen2 hours ago‘Pure’ DeFi has little chance for real-world use because of need for oracles: BISAccording to the BIS researchers, a centralized oracle based on trust is the only option for DeFi, and variati
Small Business Owners Study Says Los Angeles Ranks the Most Crypto-Friendly City in the US
Small Business Owners Study Says Los Angeles Ranks the Most Crypto-Friendly City in the US A recent study conducted by the online invoicing company that works with small businesses
Dogecoin Faces Make-Or-Break Support Level – Will DOGE Hold?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin’s Four-Month Bear Trend Intact Even After 16% Price Rise
View Bitcoin remains trapped in a four-month falling channel despite registering double-digit gains last week. Prices could pull back to former resistance-turned-support of $8,800 in the next 24 hours. The bearish case w
Bitcoin, Ethereum Technical Analysis: ETH Moves Towards $1,700, BTC Largely Unchanged
Bitcoin, Ethereum Technical Analysis: ETH Moves Towards $1,700, BTC Largely Unchanged Ethereum moved closer to $1,700 in today’s session, as prices continued to rebound foll
Meta Reportedly Preparing for a New Round of Layoffs
Meta Reportedly Preparing for a New Round of Layoffs Meta, the company that owns Whatsapp, Instagram, and Facebook, is reportedly preparing to announce a new round of layoffs in th
Founders of Multimillion-Dollar Global Crypto Ponzi Scheme ‘Airbit Club’ Plead Guilty
Founders of Multimillion-Dollar Global Crypto Ponzi Scheme "Airbit Club" Plead Guilty The founders and promoters of multimillion-dollar cryptocurrency Ponzi scheme Airbit Club have
Ethereum Weekly Candle Hints At Pre-Tower Top Formation – Details
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Airtm Winds Down Cryptocurrency Trading, Exchanges All Funds to Native Stablecoin
Airtm Winds Down Cryptocurrency Trading, Exchanges All Funds to Native Stablecoin Airtm, a Latam popular cryptocurrency exchange and wallet, has announced it is winding down crypto
William Suberg7 hours ago100%+ BTC price gains? Bitcoin faces ‘massively overvalued’ stocksBitcoin posted a classic “Uptober,” but risk assets across the board risk a serious contraction, forecasts warn.3817 Tota