Argentines started buying Bitcoin
Residents of Argentina are converting record amounts of the national currency to Bitcoin, according to the analytical company Arcane Research. Researchers found that the trading volume of the first cryptocurrency paired with the Argentine peso has increased by more than 1000% since January 2018.
This is happening against the background of the deteriorating economic situation in the country. The local currency is experiencing hyperinflation, and the state is on the verge of default. On April 22, the Argentine authorities did not transfer the payment of $500 million in foreign debt. The situation is making worse by the coronavirus pandemic, which has resulted in a 5.7% drop in GDP in 2020, according to IMF forecasts.
Inflation is not the only reason for the growth of trading on the Argentine LocalBitcoins. When converted to Bitcoins over the same period, the value increased by 407% and by 139% in US dollars. Analysts at Arcane Research stressed that this data confirms the real growth of the indicator.
In October, in Argentina, the Bitcoin exchange rate on the local LocalBitcoins exceeded $12,000, while the average market rate was about $9,000. This happened against the background of restrictions on the purchase of the US dollar. The country had a limit on the purchase of US currency of $200 for two months, whereas before it was $10,000.
Residents of Argentina are converting record amounts of the national currency to Bitcoin, according to the analytical company Arcane Research. Researchers found that the trading volume of the first cryptocurrency paired with the Argentine peso has increased by more than 1000% since January 2018.
This is happening against the background of the deteriorating economic situation in the country. The local currency is experiencing hyperinflation, and the state is on the verge of default. On April 22, the Argentine authorities did not transfer the payment of $500 million in foreign debt. The situation is making worse by the coronavirus pandemic, which has resulted in a 5.7% drop in GDP in 2020, according to IMF forecasts.
Inflation is not the only reason for the growth of trading on the Argentine LocalBitcoins. When converted to Bitcoins over the same period, the value increased by 407% and by 139% in US dollars. Analysts at Arcane Research stressed that this data confirms the real growth of the indicator.
In October, in Argentina, the Bitcoin exchange rate on the local LocalBitcoins exceeded $12,000, while the average market rate was about $9,000. This happened against the background of restrictions on the purchase of the US dollar. The country had a limit on the purchase of US currency of $200 for two months, whereas before it was $10,000.