Four stories from Argentina, where bitcoin and crypto rule the country
In today’s Argentina, inflation is no joke and prices change every day. That means there is fertile ground for bitcoin and crypto adoption. “The central bank has repeatedly warned about the risks of investing in volatile digital currencies, and some users are taking it cautiously,” says Reuters. Once in a blue moon, the mainstream media reports on bitcoin and crypto in a relatively positive light, and Argentina inspired one of those rare articles.
According to Reuters, “crypto penetration in Argentina was 12%, roughly twice that of Mexico and Brazil.” The reason may be that the peso “has weakened 14% this year against the dollar” and that “annual inflation rose to 58% in April and could go as high as 70% this year.” Not only that, Argentina is under “capital controls that limit currency to $200 per month.” So there is a big incentive to seek refuge in bitcoin and stablecoins.
From Argentina: The Cafe Owner
In the port of Buenos Aires in Puerto Madero, the Crypstation cafe recently opened. Screens show “real-time cryptocurrency price quotes” and they accept bitcoin and crypto. Reuters quotes one of Crypstation’s founders, Mauro Liberman:
“The local environment is pushing people to protect their capital in cryptocurrencies, which is why we see growth increasing. Across Latin America, the growth potential is huge. It’s an avalanche that won’t be stopped.”
From Argentina: The IT specialist
Another interviewee is Victor Levrero, “an IT specialist in Buenos Aires province” who “puts his spare savings into stablecoin and bitcoin every month after using up his $200 quota to convert pesos to dollars.” He told Reuters he doesn’t even bother with banks anymore:
“Basically it’s because I lose less. With Argentine inflation between 60-70%, and fixed terms paying 30-35%, it just doesn’t work.”
BTC price chart for 09/20/2022 on Bitstamp | Source: BTC/USD on TradingView.com
From Argentina: The self-employed computer technician
Although he is into computers, Marcelo Vila only has “a small amount invested in bitcoin and Ether.” He proceeds cautiously, as all newcomers should:
“The idea is to expand the share of funds invested in crypto. But until I get to know the crypto market, I can’t put a lot of money into it.”
From Argentina: The Home Miner
The fourth subject is Sebastian Carsorio, who comes from a poor neighborhood and “wants to dig himself out of poverty using a homemade cryptocurrency mine he put together with recycled computer parts from his work.” Impressive.
“I repaired the stuff and put it together in a computer,” he told Reuters at his home, where he had screens showing how mining is going. He started with Ethereum and then bitcoin – which allowed him to buy some land and go back to school.
“I want to keep mining because it’s a good way to save,” Carsorio said, explaining that he gets a better exchange rate for pesos than he would on the street. “When money has been tight, mining has saved me many times.”
How many Argentines can say something similar? Bitcoin and crypto are taking hold because people need them. The agreement the government signed with FMI which specifically required for them to counter the bitcoin industry in Argentina can only do so much. People need a refuge from inflation and cryptocurrencies provide that, it’s as simple as that.
In recent news that reflects crypto adoption, Bitfarms recently started the engine of theirs brand new bitcoin farm in Argentina. For its part, the government has wine producing region of Mendoza announced that they will accept tax payments in cryptocurrencies.
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