Bitcoin Hits All-Time-High in Argentinian Pesos – Will Inflation Spark BTC Adoption?

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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October 23, 2023 07:05 EDT

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Bitcoin (BTC) has hit an all-time price high in Argentinian pesos – a fact that appears to say more about the struggling fiat than the popular cryptoasset.

The peso (ARS) has been dogged by spiraling inflation in recent years.

This has intensified in recent months, with inflation now topping the 100% mark.

Inflation in Argentina is now 7.58% per day. pic.twitter.com/pdspz8M8IP

— Michael Saylor⚡️ (@saylor) April 25, 2023

BTC’s popularity, meanwhile, is on the rise in Argentina.

At present, 1 BTC is currently trading for about ARS 6,331,980 on most international exchanges.

By contrast, BTC is currently trading for just over $28,000 on April 26, down from highs of over $30,000 in mid-April.

Caps on USD buying have drawn many Argentines to the BTC and altcoin markets.

Is Inflation Sparking Argentine BTC Adoption?

Multiple media reports have noted that black market vendors are selling USD bills at over double their spot market rates.

Central bank reserves, some believe, are starting to run dangerously low.

Many experts think reserves may have halved since 2019.

Some citizens have taken to the street in protest, claiming that the government’s monetary policy is to blame for the state of the peso.

Protesters burned an effigy of the International Monetary Fund (IMF) at a recent march.

Protests were held in Argentina 🇦🇷 against neoliberal IMF policies and in rejection of the visit of SOUTHCOM Commander, Laura Richardson. pic.twitter.com/6Ln2ZAgrfM

— Kawsachun News (@KawsachunNews) April 17, 2023

Presidential elections are slated for October this year.

The ruling President Alberto Fernandez this month announced that he would not run for reelection.

The media outlet Criptonoticias wrote:

“The proximity of the elections […] is one of the factors that has led the [Argentine] population to dispose of the increasingly devalued Argentine peso on a massive scale.”

With demand spiking, some Argentine BTC vendors are asking for sky-high prices for fiat-to-crypto purchases.

The media outlet reported that “some brokers and exchanges” in the nation were charging prices of up to “ARS 13.5 million” (currently over $61,000) for BTC 1.