Bitcoin, the world’s largest cryptocurrency, has hit an all-time high in value against the Argentinian peso. This achievement is a clear indication of the current struggles of the Argentinian fiat currency, which has been beset by spiraling inflation over recent years. With the inflation rate now surpassing the 100% mark, it is no surprise that Bitcoin’s popularity is on the rise in Argentina.
Bitcoin’s current trading price on most international exchanges is around ARS 6,331,980 for BTC 1, which is significantly higher than the peso’s value. In contrast, Bitcoin is currently trading at just over $28,000 on April 26, down from its recent high of over $30,000 in mid-April.
The Limits on USD Buying Drives Argentines to Bitcoin
Due to the caps on USD buying, many Argentines have been forced to explore alternative markets such as Bitcoin and altcoins. Black market vendors are selling USD bills at over double their spot market rates, while the central bank’s reserves are believed to have dangerously reduced. Experts estimate that reserves may have halved since 2019.
Some Argentinians are blaming the government’s monetary policy for the current state of the peso, with protesters taking to the streets to express their grievances. In fact, at a recent march, protestors burnt an effigy of the International Monetary Fund (IMF).
Bitcoin Adoption in Argentina Driven by Inflation?
With demand for Bitcoin surging, some Argentine BTC vendors are charging sky-high prices for fiat-to-crypto purchases. Reports indicate that “some brokers and exchanges” are charging prices of up to ARS 13.5 million, which is currently over $61,000 for BTC 1.
The surging value of Bitcoin against the Argentinian peso is a clear indication of the struggles of the fiat currency. With the inflation rate surpassing the 100% mark, it is unsurprising that Bitcoin is becoming increasingly popular in Argentina. The limits on USD buying and the dwindling central bank reserves have only added fuel to the fire, with some citizens blaming the government’s monetary policy for the state of the peso. As Bitcoin continues to be a popular alternative, some BTC vendors are charging exorbitant prices for fiat-to-crypto purchases.