Bitcoin Forum

https://www.newsbtc.com/2019/10/30/bitcoin-trades-at-large-premium-in-argentina-as-dollar-purchase-restrictions-set-in/


I guess the workaround is buying bitcoin and then taking a trip to another country where you can cash out in dollars using local bitcoins.

Is this even feasible and how many will be taking a trip like these to take advantage of the situation make a few thousand dollars, there might be i do not know but these situation arises because of the limitations by the banking sector amid the financial crisis they are facing and it is really difficult to see these situations creeping up globally and worried when we will be hitting by these.

People will look for alternative if a financial crises struck a country strategically they are on their own even it involves risk, more and more countries will suffer a scenarios like this if deregulation and government continuosly losing power financially. This is the downside if we fully intrust our money to banks better if we diversify our financial capabilities looking for alternative money, thinking in advance could save us from worst cases.

I've never heard of Ripio, and my question is can't Argentinians buy bitcoin on some other exchange if they need to?  I assume Ripio is an online exchange and that Argentina's citizens aren't limited as to what crypto exchanges they can use (tho I could be wrong).  Also that mark up doesn't seem too extreme to me.  That sounds about like what you'd get if you were to buy bitcoin at an ATM.

Very interesting article, by the way.  It sounds crazy to me that the gov't would limit the amount of dollars you could buy per month when the economy is suffering so badly.  Hopefully bitcoin can give the people who live there an alternative to cash and that they'll stick with it in the future.  This is exactly what bitcoin was made for.

Your workaround does not sound feasible for those who small-cap to mid-cap traders. Only whales would attempt to do so and by all means they have been doing it every once and while to launder their money which is also why they get target by income tax and exchanges force KYC on them.

It is likely that there are bitcoin based business operating from Argentina and they are fueling this economic conditions to set it. They may just move on to another country if they feel that the noose is tightening. This does end up being a choke for the smaller startups based on crypto and governments predatory policies to them.

Old news with new numbers, before the limit was $10 000, now it is only $100 in cash + $200 with a bank account. But I have no doubt that the people of Argentina will be able to circumvent all possible restrictions if there is a desire for something, there is also a way to make it happen.

The average salary in Argentina is around 19,014 ARS ($320), so I doubt too many people can invest in buying BTC or $ after paying all the living expenses in one month. Argentina is still quite a small market for crypto-based on OP article - in 4 days of trading only $200 000 is traded so far.

Previous discussion can be found in this thread: Argentina capital controls, a strong case for bitcoin (https://bitcointalk.org/index.php?topic=5180878.0)

That has been the option of many holders whose country is struggling in its economy, the immigration cannot stop you for doing this because all are in USB or saved in your email where you can access abroad, many are doing right now, our country has a limitation on how many dollars you can buy to take out abroad, with Cryptocurrency all has become so easy and there's no tax either.

I think it is? Though there are a lot of possible process involved that are needed to be done beforehand though, so it is kind of a hassle.

Well, I don't blame them with the limiting thingy. It is the job of the government to regulate fiat and at the very least, let fiat be the most used currency for most of the people. This could at the very least let the peso in their country circulate around the market itself, letting the economy grow and repair itself. But with how Argentina people are buying BTC instead, this let's their peso go away in the form of USD which I think restrains the growth of their economy.

Awesome that you wrote that, because I was wondering about that $100 limit.  BTW, is that 19,014 ARS the monthly salary or annual?  I will assume it's monthly--and if it's yearly, that's incredible.  I had no idea that the cost of living was that cheap, though I realize that it wouldn't seem that way to people who live there.

Bitcoin won't be a safe-haven asset to the people of Argentina, even if it becomes a go-to asset.  There's a big difference.  If any of them do buy bitcoin, there's a damn good chance they could lose purchasing power.  They'd be much better off sticking with USD if they can survive on that pitiful $100/month.

And yeah, I'm sure they can figure out a way around the restriction but it would be so much better if their government didn't impose that kind of thing in the first place.  It sounds extremely repressive.

It's not about making a few thousand dollars. It's simply about preserving your money. How many crises has Argentina gone through now? It's happening practically every decade now.

It makes sense to buy bitcoin simply to make sure your savings don't lose value. Even if you can save $500, it's worth it compared to seeing your money become worthless AGAIN.

South Americans countries were always on top when it comes to cryptocurrencies and its good to see that argentina its stepping up more than usual when it comes to Bitcoin adoption. Its seems that the only country left to point citizen to adoption of cryptos is USA , which is unbelievable as all adoption started to rise all over the world and USA is still fighting for a regulation ...they will loose this race for sure and maybe its intentionally.

Inflation in Argentina is a complication of several mistakes in decision making including:
- False fiscal policy of the central bank of Argentina by raising the benchmark interest rate in the hope of reducing inflation and keeping investors from running, such as saving fuel subsidies, raising taxes and reducing the cost of state spending.
- Borrowing funds from the IMF, giving rise to a series of policies that are detrimental to its people so that the stability of the government is disrupted
- Uncertain political conditions due to presidential elections, and the concerns of opposition candidates who won and the fact that the opposition won the election in October 2019. President Macri is a follower of austerity.
- the drought that hit Argentina so that the agricultural sector experienced a decline, even though the agricultural sector was the biggest foreign exchange earner for Argentina.

Argentina's conditions and central bank policies that limit buyers of gold and bitcoin make investors and even the Argentine community buy bitcoin to protect the value of their assets against inflation. Indeed the people of Argentina can choose to buy gold or bitcoin, many choose bitcoin because it is easier to buy and store than gold. The case in Argentina shows that bitcoin is trusted by many people in the world, what is needed now is massive education so that many parties who have come to understand and use bitcoin.

They would be purchasing Bitcoin using the Argentine peso, right? In that case, why can't they carry the Peso banknotes with them to either Uruguay or Brazil and then convert to USD there? Once the cash is converted, then they can bring it back to Argentina. The restriction is only on purchasing USD from the central bank, and not from the other sources. Purchasing Bitcoin in Argentina and then converting it to USD in neighboring nations sounds too complex. They need to find a buyer in Brazil, who would pay them physical cash. And obviously there are multiple risk factors associated with this method.

BTW, I checked the exchange rates of the national currency (Argentine Peso). It is going down like a falling knife. During the past 30-days, the exchange rate has gone from 1 USD = 57 Peso to 1 USD = 60 Peso. And the government is trying hard to prop up the currency and in the exchange rate is even lower in the dark market.

Compared most other countries Argentina is small market for Cryptocurrency. The inflation in the country has made them think of an alternative to keep their earnings secure. This seems to be the reason for the increasing interest over cryptocurrency investment. Maybe over the years this might evolve as a big market.

Also the market contribution increases when there is increase in the trading practice of cryptocurrency. Now there isn't such a big number in trading as people aren't earning big. Only limited zones were developed, which marks the need for uniform development.

This is one of the many scenarios possible that bitcoin could help a sinking economy. Fewer restrictions and smaller fees attract people to invest their precious funds in bitcoin, but the volatility is one of the factors that might keep them away and couldn't be removed in the market because it's core idea is being decentralized controlled by pure supply and demand. What OP has told is somewhat of a refuge to other country's fiat to cut losses. While this may be a temporary fix, Argentina needs to prevent further inflation or they'll face serious problem with their currency.

Wow, In Argentina, the Bitcoin price is 30% more than any other country, that's a positive move for this coin in any specific nation, I think Argentina is one of the highest Bitcoin holders countries, so it makes them a safe place, not only that but also south American countries are always a safe area for this platform, that's why the USA government are trying to oppose always towards blockchain and Bitcoin technology, I think the USA government is still the main problem of this platform but it may require more time to be stable in every corner of this technology, today or tomorrow, Bitcoin will dominate in the monetary world because it has a lot of potentiality and versatility.

The economic crisis in different countries was a catastrophe. The restriction may lead to the person who bears the money to buy or exchange their cash when they want to leave the country.
The solution is indeed to buy Bitcoin or stable coin like USDT and re-sell after outside the country and make its dollar. But can it possibly be a good solution? Hopefully not subject to illegal transactions

Bitcoin will eventually become a safe haven everywhere. It is likely that this process starts with crisis-hit countries. If your nation is hit by hyper-inflation, Bitcoin is now a valid choice. And even if you're wary of the price fluctuations - which are less for bitcoin than for any other crypto - there are still crypto stablecoins which have proven to be safe and steady over the years.

Bitcoin will become seen as the best store-of-value option there is. It will supplant gold. As crypto matures, its price fluctuations will diminish. The path may be rocky, but it leads inevitably into the mainstream.

People also manipulate the $100 figure, it's actually about the total amount of $300 ($100 in cash+$200 via bank account). And as for the average salary in Argentina, I use data from Salaryexplorer (http://www.salaryexplorer.com/salary-survey.php?loc=10&loctype=1), you can see more details on that page. It may be important to emphasize that 50% of all employees earn a salary below the average amount, and 25% earn less than 9,372 ARS which is more than half of the average salary.

Actually life is not so cheap in Argentina (for local people), and by this article (https://www.investopedia.com/articles/personal-finance/061715/retire-argentina-200000-savings.asp) one person can live comfortably for $1000 per month. If we consider a family of four with two employees and an average salary (2x $320), this is not money that can make a decent living in an urban environment, but in rural area, prices are significantly lower.

I think people do their best to make extra money in their spare time, as is the case throughout Central and South America. We can take Cuba for example, where one doctor's salary is just around $50 per month, and one family of 4 need around $600-$700 per month. What people do there is the art of survival, in the literal sense of the word.

The economic crisis have been hitting many countries recently. The situation will get worse in coming years as the threat of recession is looming over us and political instability is increasing throughout the globe. In such a time, crypto could be preferred as an alternative form of investment which can safeguard ones money from devaluation. It's time when people understand the importance of decentralized currency.

The South American continent is getting worse in terms of their fiat system and usability. Lucky for them in a way because Bitcoin is already here as a much better alternative. Brazil, Venezuela, Colombia, Argentina, and what's next? The worse the economic situation in these countries gets, the wider the adoption of Bitcoin grows. What I hope is that the ordinary shops in these countries will also start adopting Bitcoin for the citizens to be able to continue their day to day life with Bitcoin as their money.

Wait, so you can only withdraw 100 dollars worth of physical cash? That's crazy... Not sure what you'd be able to do with that much money.

What does the 10,000 restriction mean? They will only let you perform 10,000 dollars worth of transactions per month before they lock your account until the next month?

This is astounding... Not even for Bitcoin, but the country of Argentina in general, I'm not sure why they aren't going for a band-aid option with Bitcoin - looks like they are definitely buckling down.

That sounds so easy in paper but actually that is not. Going to Venezuela and selling your Bitcoin or just using the local exchange platforms available is not a very viable option to anyone. Had it been easy like that certainly we could have taken advantage of this market en masse. It is really amazing how Venezuela continues to be the top model when it comes to how Bitcoin is helping the people cope up with the crippling economic conditions they are in.

Though it is quite painful to see a country and its people suffer from the many maladies they are in, we are quite thankful that they have one tool available for the many. Now, can somebody please tell us more how easy or how difficult it is to buy and hold Bitcoin in that said country...? Aside from Venezulea, there is also Zimbabwe where Bitcoin is getting more popular each day.

this can be very good news because this can trigger other countries to change and become a country that can accept payments using bitcoin and develop blockchain technology to be used for many people around the world, hopefully this can be a good start for payments using bitcoin.

If you just read what it is all about, maybe you wouldn't ask questions like this. This restriction means that people in Argentina can buy a maximum of $300 each month ($100 in cash+$200 with bank account). Or if it's easier for you to understand, they can exchange that amount of national currency into the US dollar.


Same as above, it was a previous restriction that is no longer valid. But as I wrote before, if there is a desire to do something, a way will be found. The black market in Argentina offers $ at a premium price of 7%, and you can buy as much as you want regardless of state restrictions.

If there is any restrictions the black market will flourish and that is not a new development, does anyone know any local exchanges where we can trade and take advantage of the situation because the premium amount looks good and now the central bank of Argentina has blocked the purchase of bitcoin with credit cards and as the restrictions increases the premium increases with it.

The problem is they are super close to 2 huge nations but they are failing with trades because those nations take advantage of these places. Economy will never recover unless they start to charge real prices for the real american people instead of Argentinian. You visit Argentina and they charge you money they can survive with instead of money you can survive with.

A hotel in USA and Canada costs 100 bucks and nobody bats an eye, it costs 100 bucks in Argentina and everyone goes crazy. Maybe hotel is a bad example but you understand what I am trying to say, with all trade goods they should be starting to charge competitive prices. Bitcoin will continue to soar in these nations as long as they don't start valuing their own currency like it suppose to be valued.

Localbitcoin traders from Argentina is going to get all the benefits from their limitations of purchasing dollars every month but what if they have another restrictions related to bitcoin trading like in India,they are not allowed to buy or sell bitcoin using bank account from this they also can make more people afraid of doing it at least in large amount.

It's a side effect of a government crisis, I'm not happy because people are suffering for governments mistakes, but more and more people are seeing BTC as a secure method to hold their money without risk of goverments freeze their accounts or lose money with rate of inflation

They're trying to prevent capital flight (because capital flight tanks their currency even more and makes their dollar loans even harder to pay).

Lots of countries have capital controls - for example China, which really shouldn't given they claim to be a superpower.

I think you missed the main detail: they can only use this restriction with banks. They can not use these restrictions on the BTC and this proves to us again how valuable it is.

To get it, the locals can deal with each other or someone from another country. IMO apart from the weaknesses of the governments, there is no major problem.

This is the more they resist, the more they lose scenario of USA. we all know all over the world that the cryptocurrency adoption is being prominent. There's no reason not to accept it as it is now a challenge for the world to adopt. Well, maybe Argentina can see how these crypto will help them, unlike US, who see crypto as a threat to their people, maybe in their government. If and only if politicians in their country will push hard and be well knowledgeable enough on what crypto is - they will not suffer from this regulations that just keep them away from the bright future of crypto.

These economic crisis are really getting worse and deepening by the day. I wonder what an average person will don with just $100 per month limit, that's too low, it's like dictating for people how to live their lives and how to spend their hard earned money.
In all this is just opening more doors for crypto adoption. As fiat get weaker, we get stronger.

What if the price of Bitcoins really goes down ?
Like down down !
Then people will loose everything even before they realize anything , it would lead to chaos and problem also at the same time the government is too corrupted and sick if the people have to actually start using currencies that are non attended , I don't think as Fiat gets weaker we get stronger ! Fiat is very necessary RightNow if you take out old people , kids , poor from the equation then it's fine , but that's a weird world we are talking about .

Isn't it too much work to do this?? Imagine how many times do they have to go to other country just to cash out their bitcoin? And if they're short with money becayse the government is limiting them, then probably they won't waste their money for trips where they can just use it for daily expenses.

But cryptocurrency is becoming an option for individuals now when a certain country is having a crisis. They can see what bitcoin and crypto can help them during this kind of problems.

It's as risk, and if you think, everything have risks, even the fiat money like inflation for example

I will tell a strategy that can work easily to keep your money: buy BTC and keep some percentage in BTC and trade another percentage in a stable coin like Tether, you will have more safety
And if a person buy BTC, it's easy to maintain informed to prevent loss, if you see signals that BTC will go down, sell and buy another time, os change to stable coins

BTC will not go down to zero in an hour

All countries that have an economic crisis then they will glance towards Bitcoin, like Argentina and Venezuela, these two countries are experiencing a monetary crisis that has caused their country's debt to swell. They will adopt Cryptocurrency as a new foundation to handle the crisis.

What if not? they don't have anything to lose, that is the reason why they are taking all of the chances they could have to change their lives. When you are in this kind of situation, you won't have anytime to think a lot of what ifs, you will be more positive all of the time. Fiat is necessary but when countries are suffering from too much poverty that cause by inflation, fiat don't have any value to them, it is basically more like a trash, toilet paper to be precise.


Central Banks could narrow everything when it comes to bitcoins, and make policies to seize its user, but people nowadays are smarter than banks, they will always find a way to earn bitcoin.

Neither Venezuela nor Argentina have made any moves to promote the usage of Bitcoin. Isolated incidents have been used as clickbait by some of the Bitcoin news sites to attract traffic, and I am not hearing any support for Bitcoin coming from the governments of these countries. On the other hand, the government is likely to crack down on Bitcoin usage, if it feels that the citizens are using BTC to protect themselves from the devaluation of the national currency.

Its merely because of the fact that Argentian Peso is really unstabilized due to politics and economic disturbances going around in the country. As usual we have seen Bitcoin coming to rescue in such situations due to it's easier transferability and good liquidity worldwide. We have even seen bitcoin being sold at premium in such countries because of such a surge in demand. But these people definitely aren't leaving the country with their Bitcoins. They are just using it to store their savings until the conditions stabilize.

It's not just Argentina. It's applicable to every county with a local crisis or high inflation.
I was thinking about the same stuff a few years ago. It is too risky for me.

1. You need to operate with over 100K-200K USD in coins. Or the airplane tickets and other amendments will eat your profit.
2. Being nobody in such a country and operating with such amount of cash on a daily/weekly basis... very dangerous.
3. Every Localbitcoins deal could end up as scam or get you beat (or even worst)
4. Customs problems and local authority bribing. Again eating your profit.

In this situation with fiat that's getting weaker, every people tend to switch or divert their asset with crypto when government cannot handle pressures over their people. When a person isn't comfortable with how the government regulate their currency, finding another alternatives is a good options just to make their asset sustainable and feasible to earn some passive income. Their mindsets now is moving to a new wave of financial independence, in which government is out of control due to decentralized matter.

Bitcoin is a universal currency which is easily available for anyone around the world. It's the only true global currency and whenever people find it hard to believe in their own currency, bitcoin would always come to rescue. Bitcoin is independent of ponzi created by the IMF. Let the whole world trade in and out with bitcoin ditching fiat for once and all.

I wonder why traders on those argentinian exchange don't just switch to internation exchanges like Binance. If bitcoin is trading at a premium of $10k++ when it's only around ~$9k+ on the global market, why buy premium?

I think arbitrage can't be done if they're limiting exchanges users to argentinians but on the flip side why don't they just buy cheaper from global markets.  ???

Any person with the access of internet can become owner of bitcoin. This is one of the beautiful things about bitcoin. It treats every single person with equality. No discrimination on the basis of region, religion or color. All the holders get same sort of treatment from bitcoin. That time is not far away when your this wish of getting rid of fiat will be fulfilled. We are moving towards the era of bitcoin.

Why would you think that fiat would be replaced? I don’t really think that fiat would be replaced really since it has its uses and is vital to our economy. Well it is possible that it would be deeply inetegrated into our daily living in the future but I can’t envision that in our life that fiat would be nowhere.

Because Binance doesn't accept the argentinian peso. They'd have to somehow buy dollars FIRST before using Binance.

And the problem in Argentina is that you can't get hold of dollars.

What you say now is in complete opposition to the OP. Every Argentinian can buy max $300 every month since this is a new limit, and as far I know Argentina is not on Binance blacklist. In practice, it would then be possible to open an account there and trade by using some of Binance deposit methods listed here (https://www.binance.com/en/buy-sell-crypto).

But this whole story about safe-haven currency falls into the water if we consider the average incomes in Argentina. Most have just enough money to cover their basic living expenses, and for most, investing in Bitcoin is something they can't afford.

The margin here is something an Argentina citizen can take advantage of or contact a friend outside Argentina to make a deal and since bitcoin breaks the barrier that comes with location or nationality, it becomes super easy to carry out such transaction.

I don't think people are seeing bitcoin as a safe haven there despite the premium its trading. Rather, they are only having a surge in activity which makes demand more than supply thereby increasing the price and that is why the ripple effect is still not being felt outside Argentina where it is and I think its because of the limitation being place by their central bank which makes transacting internationally difficult.

I do not agree with you. Bitcoin is not a universal currency, indeed its use is general but many countries prohibit the use of bitcoin as a means of payment, if there are loopholes in other countries not recognizing it as a legal payment instrument then there is no legal guarantee covering transactions using bitcoin.

Bitcoin is not easily available for anyone around the world. Many people do not know what bitcoin is and what blockchain is because many older generations do not know the world of financial technology. In addition, many countries do not have internet access to come into contact with blockchain technology.

Some of the weaknesses of bitcoin that we should pay attention to:
- Bitcoin acceptance and adoption is still minimal because actually bitcoin is an asset, not money.
- The value is very volatile.
- Prone to disappear due to human error.
- Scammers and criminals could use Bitcoin for their actions.

[quote iauthor=audaciousbeing link=topic=5197526.msg52980281#msg52980281 date=1572879524]

The margin here is something an Argentina citizen can take advantage of or contact a friend outside Argentina to make a deal and since bitcoin breaks the barrier that comes with location or nationality, it becomes super easy to carry out such transaction.

[/quote]

If it was that easy to do, the premium would have disappeared already. In most markets pricing anomalies are eliminated within days by speculators taking advantage of the arbitrage opportunity.

If a premium persists it's because it's too difficult to take advantage of it. In this case the person outside Argentina buys the bitcoin, sends it to the Argentinian who then sells it for dollars at a premium - but cannot withdraw more than $100. So it only works on really small amounts.

Bitcoin is very safe haven assets where ever you come from not only in Argentina but almost country have safety for saving bitcoin during you safe with correct wallet, but argentina have potential become friendly country for using bitcoin because they try for legal bitcoin s currency payment, only Argentina on Latin American country look serious with bitcoin as currency payment.

It's happening, and some people predicted that Bitcoin will be a safe haven for many people who are sick from the banking sector. One by one country will start turning to cryptocurrencies, and people will turn to the safest and the best one, Bitcoin.
Let's wait for some time and see which country will be the next one. Can anyone predict from which country we will receive news about adoption in the next few months?

Sounds like an easy thing though. Worth trying if you brought a big bag of crypto to cash out in Argentina. Besides is it even legit? I thought that Bitcoin market cap price are all the same around the world. In addition is there even a way to cash it out like requesting it to someone on your behalf, and would be deliver it out to you. But sounds like not real though, well, those are just my thoughts.

This is not surprising at all. Why wouldn’t they go for Bitcoin? When the countries Fiat is crumbling on its head, one has to hide someplace safe. I think more countries will start joining the league, as lots of countries are in so much economic crisis.
Having said all that, I wonder what will become of countries like Argentina if more people begin to take cover with Bitcoin. How will that affect their economic condition? How would the Government react?

The part B of your statement is not different from what the op is saying too, because Argentina has been a cryptocurrency friendly country and this make the op refer to it as safe haven, majority of their citizens would be without any fear of actually using cryptocurrency for their trades which I believe that the government of Argentina too will also be involved in using it to make trades to grow their economy.

The only thing that they have not very much accepted as other countries too have not accepted is the use of it as currency first and I think before they can really accept it as currency, virtually all countries would have to come together as one to actually decide in if they are confidence in using it as global currency or not and that is the only way it can become a safe haven everywhere.

I really doubt whether many users have that much coins in their wallets. Especially in countries such as Venezuela and Argentina, common people have witnessed their wealth get eroded to a fraction of the former self during the past few years. But do they really need 200K USD in cryptocurrency? For example, the Argentines can travel to Uruguay in train and it costs less than $100. The entire region is monolingual Spanish, and therefore they should not find much issues in finding a buyer or a seller.

Bitcoins' decentralization is the whole purpose we use it, no person can change the way bitcoin is all by themselves, of course there are democratic ways we could do something about bitcoin like changing to segwit for example but that doesn't mean it is centralized, we as the people decided upon that as a whole and that is why it is a good method, it is not unchangeable fully stuck in 10 years ago type of code, it can be changed but it is also not in the control of just one person, it all depends on us and how we use the blockchain to vote on what we want to achieve and want to change with the code.

Hence, Argentina and all other places that have weak currencies can easily switch to bitcoin so that people could actually own a currency that can't be going down in value because of some idiot presidents bad moves.

The Argentinian Central Bank is now putting restrictions on the purchase of bitcoin:

https://u.today/bitcoin-trading-volume-hits-new-ath-in-argentina-after-central-bank-banned-purchasing-crypto-with


To give you an idea of how worthless the Argentinian Peso is, Google says 1 Argentinian Peso = 0.0000018 bitcoin.

Thats right: 1 Argentinian Peso = 180 satoshi.

For a while now, local bitcoins does not have the cash payment possibilty.
That doe snot mean that there are not other services that offer that option. This is normal for economies where they restrict buying other countries currency while their is depreciating, very irresponsible move from bank.

And that is why some government around the world are trying to protect themselves by either banning or putting a regulatory framework because they don't want this to get out of hand.


We can't really say who's country is next.

And after Argentinian puts a restriction on bitcoin, Bitcoin Trading Volume Hits New ATH in Argentina After Central Bank Banned Purchasing Crypto with Credit Cards (https://u.today/bitcoin-trading-volume-hits-new-ath-in-argentina-after-central-bank-banned-purchasing-crypto-with). This is going to be ugly, they might turn out to be the next Venezuela here, where people are using bitcoin in order to survived because their government is failing them.

Banks have their own reason to put up such restrictions. You should blame this on whales who have tried to put through some good amount of coins through their exchanges and came under investigation from authorities or the surveillance groups finding out some black market deals going through. Nobody can say for sure and nobody will.

Its sad for the people living there but truth is even though they cry foul, nobody is going to care.

In my opinion, the prohibition of purchasing cryptocurrency using a credit card is temporary. The government and the central bank take the policy with the aim of:
- Instability of the cryptocurrency market causes the highest risk when allowing the use of credit cards to purchase cryptocurrency. Concern about bad credit. So the bank assumes it's easier for customers to buy cryptocurrency than it is to pay credit card bills.
- The crypto market volatility is very high, banks are afraid that if there is a price decline like last year the debtor's ability to pay their bills also decreases.

While in Argentina itself, the ban on buying bitcoin with a credit card is intended to maintain the country's foreign exchange reserves. Because the purchase of bitcoin with a credit card causes a negative balance in the international trade balance because foreign exchange flows out.

Foreign exchange reserves can be used to maintain the external balance of the value of the peso or in other words to maintain the balance of the exchange rate of the peso against foreign currencies. When a peso depreciates, its foreign exchange reserves can be used to intervene by pouring foreign exchange on the money market so that the peso is appreciated

The government is concerned about the flow of hot money to Argentina. This will be safe when the foreign exchange reserves also increase, this indicates that the inflow of funds held by the monetary authority. The thing to worry about is when a lot of capital comes in but the position of foreign exchange reserves does not increase significantly. If this happens then when capital is run out (reversal of capital) then the peso goes down (depreciation) but due to low foreign exchange reserves, the Central Bank is not able to secure it by intervening so that the peso value can be held back or even rise (appreciation) again.

When people stop trust in fiat bitcoin comes

What the country fears most is the flight of capital through dollars and / or Bitcoin, it is obvious that people are now beginning to acquire dollars and / or Bitcoin anyway, this to protect themselves from the high rates caused by the inflation.

The regulatory measures for the country when it comes to limiting the flow of dollars is because in reality the government needs to have liquidity, that liquidity is achieved by devaluing currency to obtain currencies but the consequence is that its local economy suffers.

Based on other scenarios such as inflation in Venezuela, inflation has incalculable levels, but the exchange control obeys as a measure implemented by the government for the benefit of the government and not as an economic measure, since traditional economic measures do not solve the country, Argentina see this scenario and do not want to fall into the same situation, it is expected that by December the new president will assume possession, will follow the economic measures given by the current president.

Bitcoin is a refuge from inflation, in fact, it is the best fighter against inflation, when Bitcoin falls in price, it is still a great option against a traditional economy with rising inflation rates.

The positive of this, is that due to the crises in these countries, the demand for bitcoin increases, therefore the adoption is greater and in a short time, the higher demand less is the supply and therefore the price of Bitcoin increases .

I don't know what is wrong with these Latin American countries. They elect socialists to power and they indulge in all sort of freebie distribution and destroy the economy. Look at the case in Venezuela. Most of the issues can be resolved, if the subsidy on gasoline is removed and the prices are brought closer to the international rates. But the government doesn't want to do that.

I doubt that the official trading volume are a true reflection of what is actually happening there. The black market traders know that the

government are putting restrictions on money flowing to other currencies, so they will avoid regulated exchanges. Previously Localbitcoins was a

more true source for what actually happens, but they too turn legal now, so you cannot use their data anymore.  ::)  It will be interesting to see

what the true data are for Argentina.  ;)

I am from Argentina and still in most remote places here not getting internet connections even in wireless mode too. Bitcoin may be a safe heaven for some part of people here but it may take decades before considering so in general for all Argentinians.

Someone was asking whether they will continue to be holding Bitcoin even when the price is falling down, and yes of course there are people that would continue to hold even when the price of Bitcoin is going down. Some people are getting discouraged because of this price that has decreased recently.

I am not even worried about that, I'm still holding my coins and not minding the price that keeps fluctuating up and down. If you're afraid you can go for asset backed cryptocurrencies. And from what I've been reading lately online, there might soon be a bull run, some people will not believe it because they are afraid, until when it's late that is when they start buying out of FOMO.

This is the case for Venezuela too. When President Nicolás Maduro threw the economy into the ground with extreme socialist intervention, this drove their economy to the dirt when oil prices fell. Even with oil prices low, they could have made it out had Maduro not taken over all major businesses of the country since 2013. You see Venezuelans adopt Bitcoin when their currency crashes and it's the same story with a lot of South American countries including Argentina. When centralization takes over, people are going to dump their cash into decentralization.

Not that surprised though. As mention in the OP, Argentina is facing economic crisis which is the main reason why Bitcoin's price shoot up. By this news, we can see how Bitcoin can greatly help a country or a person to secure their assets in times of economic crisis wherein it is much easier and convenient to store it in Bitcoin or in cryptocurrency in general along with the security that you can have and maximizing it by purchasing cold wallets if you do not trust third party services to do it for you.

That's a good idea if they have plans to hold it for a long time. And they should also b aware of the risks that are in holding cryptocurrencies because the price can fall at any time. It has been going now, but we don't know what it would be tomorrow. It's just like those that lost their money after the last bull run happened: there were people who invested a huge amount of money at the $19000 rate and when the price started to fall they lost more than half of their investment.

There are even some that couldn't bear the loss and they decided to give up and withdraw even at a loss. So anyone that is investing should have it in mind that there are risks involved and they should be ready for it.

  But I think it is too costly and it can make you a loss before using bitcoin for trading. For example, your flight ticket is nearly $ 1k, then you will have to rent a hotel and drink and I think it accounted for more than 1/3 of the price of Bitcoin. Then you will no longer profit. instead of going to other countries why don't we trade OTC? We can contact people who want to sell bitcoins and we can buy it and the bitcoins are transferred to a new wallet and the government cannot control it. right?

That is the problem, people are still holding even it is bear market. They have too much hope even though the market tells them that they are wrong. Even they have a lot of patience, but still they do not have good risk management. They are expecting too much even it is far from reality then should change that kind of mindset because it is not good for them.

Because any new emerging field everything is hardly predictable. So people think "oh its bitcoin it went from $0.0001 to damn $19k in several years. So if it went down for couple hundreds in a week it is ok, I will hold"
And I can understand them, but I do not support the opinion

They do this because they fear that if they do not have those limits everyone is going to begin to buy dollars and they are going to run out of them, that is why those limitations are put in place.

Argentina has been in a very difficult economic situation for years and it doesn't seem like the politicians of that country can resolve the situation which means that is up to each person to decide how they are going to protect their wealth and a good option to do that is bitcoin and a few other altcoins.

You just keep that negativity for yourself only, keep that bad thoughts away here. Mind your own business, we believe that bitcoin will comeback on where it was. It is a proven cryptocurrency in the world. There are a lot of good things that bitcoin brought to us holders.

It just need some time to come back again, maybe not now. I hope that it happens 8 to 10 years from now. Let's be patient and positive all the time because our future depends on it.

This makes the concept of cryptocurrency as an alternative which is basically better than fiat, but still... Bitcoin / cryptocurrency cannot replace fiat because fiat law applies.

Similar case not only in Venezuella or Argentina, previously a similar case occurred in Greece when their currencies were deflated and Bitcoin became a savior.

if crypto were better than local currency why they are still alternative and not fully replace the local currencies of that country  ?  they can still use crypto more often tho and use less fiat which makes crypto better litterally  .

 atlast these countries are the witness or the evidence that crypto is verry useful if ever there is a problem on fiats  .  hoping that other countries will get an idea of it and store/back up crypto in advance before the problem happens  .

Because basically crypto cannot take over the fiat due to economics law tha applies to it. Indeed crypto is better than fiat when talking about different aspect of conveniency in currency but it does not end there. Literally speaking crypto is better than fiat buy the government still does not believe in capability of cryptocurrency in ruling their financial system.

Crypto seems like the safe haven of declining economy, I've seen some countries that already did this. Since bitcoin and other crypto can save them why they don't have fully implement it yet? simply because it is decentralized.

It's proven that bitcoin really a safe haven against hyperinflation or failure governance.
A government that cannot maintain economic and political stability in the country is the one responsible for every loss and misery experienced by the community, hence people will choose to get the best way to overcome hardship including using cyptocurrency.

This isn't happening with Argentina alone, going through most of the countries facing hyperinflation I believe people from Zimbabwe, Venezuela prefer cryptocurrency to be a safehaven for their hard earned wealth. As days pass the value keeps declining, but with cryptocurrency even after fall there is possible chances of growth. This makes people prefer cryptocurrency as safehaven than more strong fiat of other countries.

with the occurrence of hyper inflation, of course, make their currencies worthless, when cryptocurrency arises and becomes an alternative for payment. but this is also not without risk. with large fluctuations, of course it will be difficult when working with other countries, because not many countries use it

if argentina uses cryptocurrency as a means of payment in that country, they will be the first country to actually adopt cryptocurrency, I can't wait for this phenomenon to occur  ;D

And that is one of the many reasons of why governments hate cryptocurrencies especially bitcoin, whenever a government finds itself facing economic problems they always employ the same solution which is to print as much currency as they want, and this is a very effective way to steal the wealth of their citizens.

But they cannot do this with bitcoin, if they print more currency then the price of bitcoin will just go up protecting all of those that are holding bitcoin from their manoeuvres and becoming a safe haven against inflation.

indeed, currently not many countries use Bitcoin or legalize it, but if you are in Argentina then you will buy Bitcoin for your safehaven assets. They don't think anymore if Bitcoin has a big risk, all they think about is how to maintain the value of their assets at that time.

It was never a solution to print more money when they are facing economic problems. A government will never see it as a solution, because it will just create more problems and it will just drag the country's economy down.
Bitcoin becoming a safehaven to a country because citizens are finding ways to help them individually when their own currency is struggling to survive. Other country are also trying to move in Bitcoin just like Venezuela.

Argentina's problem is very complex and acute because it is a legacy of the previous government. Bitcoin can indeed be a safe haven when inflation occurs but its role is not significant as a solution to resolve inflation or turn the wheels of the economy of a country trapped in a crisis. In the case of Argentina bitcoin is only an alternative type of payment but the government is fully aware that to suppress inflation it must keep the dollar from leaving Argentina. because the price of goods and services is calculated in dollars instead of the cryptocurrency.

The government must indeed be observant and responsive in formulating monetary and fiscal policies to overcome all economic problems that arise. Without intending to defend the government, natural conditions also triggered the Argentine economic crisis, the drought that caused commercial production of soybeans and other grains to decline so that it could not contribute to state income. Argentina is the world's largest soybean exporter and ranked third in the world's largest corn exporter.

The Argentine government is now trying to increase spending by focusing on social programs in order to revive domestic consumption and limit the outflow of dollars. In addition, the Fiscal sector is also used as a mainstay to increase state revenues including an increase in export taxes on grains. Application of a 30% tax on foreign currency purchases and write off taxes for savings in the form of pesos.

In most of the countries dollar isn't the legal tender and there is usually a limit on the amount of dollars you can keep in country where it isn't a legal tender.
I doubt once you convert your bitcoin to dollar and then coming back to argentina where the currency is peso, it will make any sense at all. So, this method isn't feasible.

But yeah in many countries, crypto is becoming a safe haven because of the hyperinflation of the fiat currency. People are buying crypto to safeguard their funds.

Bitcoin is a form of investment and profit making that has nothing to do with government. Government has no responsibility of maintaining it or regulating it. This is why all those countries who are having issues with their economy or who want to save their crumpling economy are taking help from bitcoin. Bitcoin is an escape from economical problems and third world countries are in mood to adopt it fully.

No, not like that. I think this can happen in any country, where as long as the people can be tricked and enticed with the "instant economy" the prospective leaders will surely get it. Even more ironic is, when things have gotten very bad, the leaders will not admit their mistakes before and instead look for scapegoats.

Prefer leaders who have the principle to protect the country's economy by relying on what they do have.

There are many countries like Argentina that are in crisis. Gold and Bitcoin can be a value retention tool for economically distressed countries. People have to take precautions against economic problems.

They can use Localbitcoins like us. Venezuela has been suffering those "limits" since 2004, only recently they lifted most restrictions against the USD (up until a few months back, it was technically illegal to buy things with it but people were doing it anyway).

Of course the smartest thing to do now for them is go Bitcoin and then do whatever. Because they will skip all the restrictions that way. The government destroyed their fiat so people naturally wants to get rid of it, which the government immediately forbids. We know that tale very well here and its consequences.

Funny you mention authorized exchanges, we have that too here in theory. But, its not like they have stopped people from using the favored aforementioned Finnish exchange instead...

When you think something is "too extreme", its because you haven't lived on these parts... Don't forget, Ecuador and Bolivia banned Bitcoin, and Ecuador doesn't even have their own fiat, they use the USD... Hopefully the new Bolivian regime might change that... As for Argentina, as long as they go in the path against freedom, especially economic freedom, they have a very dim future, just look at us.

The more the State tries to "control", the worse things will get. The only good control, is no control but a completely free market.

Tell that to the governments that always try those kind of solutions to their problems, the only way to avoid economic problems is for the government to be fiscally responsible but governments feel that they do not need to do that because they can always try to increase the taxes they charge to people and they can always increase the money they print.

But despite their size and their power the same rules applies to governments as everyone else and if you spend more money than what you earn sooner or later you'll get in trouble.

Both are not perfect solution to solving the problem of volatility. Bitcoin can go up or down by as much as 10% in a single day. You can't use such an asset as a store of value. Similarly, storing gold is not very easy. Storing it in the physical form can attract unwanted attention from criminals, especially in economically broke countries such as Venezuela and Argentine. Storing paper gold is also not the best option, as you can't trust the banks from these countries.

Interesting thread so far even if the risk of becoming a spam megathread is still latent ;)

Only a little (pedantic) correction: It's a total of $200, because the 100 cash USD cannot be added to the 200 which can be bought using electronic means. So if you buy 200 electronically, you can't buy the 100 with cash. Here's an explanation in Spanish (https://www.perfil.com/noticias/economia/cepo-total-solo-se-podran-comprar-200-dolares-por-mes.phtml).

There is no prohibition of purchasing cryptocurrency using credit cards. To be precise, the restriction says that Argentine banks need central bank approval if their clients want to use credit/debit cards to buy cryptocurrencies on foreign exchange sites.

So the restriction clearly isn't related to cryptocurrency volatility, but to the fact that if credit card users buy BTC e.g. on Coinbase with their cards, they do an exchange on the local forex market (normally, Peso -> US Dollar) before they can buy the Bitcoins because Coinbase won't accept Pesos, only dollars. This operation can contribute to a loss of reserves by the Central Bank, as you correctly wrote here:


Argentine people can, however, still buy Bitcoins without restrictions on the local market, with whatever payment means they want. The consequence is, obviously, that this will drive the local price higher than if we calculated a price based on the USD value and the USD/ARS exchange rate if demand is high enough. But that has already been discussed in the first posts here.

I made a thread with a related topic some weeks ago (https://bitcointalk.org/index.php?topic=5201862.msg53087453#msg53087453) about the possibility that a high market price on a single currency (like now in Argentina, or 2017 in South Korea, or 2013 in China), if strong enough, could influence the USD/BTC price because of arbitrage movements.

I don't get it that the volatility is felt as something bad. We need high volatility to reach 'our' highend goals of +$100k/coin to have any meaningful impact on the world economy.

edit: and it seems to be always better than a fiat paper currency, which devalues every 5 years by half.

when bitcoin rallies many people who believe in it, but they don't realize that fomo events can endanger them at any time. and when bitcoin slumps, many doubt it. therefore it is unfortunate that many people do not understand the nature of bitcoin, which has high fluctuations

Bitcoins power to be out of reach from all governments failures is the reason why it was created in the first place. It was basically a back up plan for everyone after 2008 because that was a global crisis that was created by just bunch of guys in suits in a wall street office.

You may think how small they are in the grasp of things, just maybe 1000 people involved with the housing mortgage bubble at most, probably less of them that are worthy like CEO's and CFO's yet those guys literally almost bankrupted all of USA as in the biggest power on the earth economical and military wise and they actually hurt Greece+Spain+Italy type of huge countries as well. Now if bitcoin was around and people invested into bitcoin as much as they did to other stuff in those nations, they would have been safe even with economy going south.

when the economic crisis occurs, the value of the national currency will fall and experience hyperinflation as happened in Venezuela and Argentina. they must look for alternative means of payment that are of relatively stable value and are not affected by inflation. Some countries affected by the crisis can not use US dollars because of sanctions from the United States so that the last solution so that they can survive they must use bitcoin for payment. so that now the adoption of bitcoin in a country that is experiencing a crisis continues to increase.

Not just in Argentina. It happened in Venezuela also and in other countries including Libya. This might also be happening in Hong Kong with the rising tension within their territory. All of these cases are giving their fiat a very uncertain value and future. And if they want to make sure that whatever money they have left will not end up worthless they need to convert them into something whose value will grow instead of decrease. Bitcoin is one great option of course.

right, some countries use bitcoin to overcome hyperinflation in their countries. the chaos of their country's economy makes their fiat money worthless, so that people come to live in poverty, indeed Hong Kong is a country that still has many problems today, and it is possible to lead to crypto

Bitcoin will only be a safe haven when it is stable but it's not. Venezuela, Argentina and Hong Kong are not making bitcoin or any cryptocurrencies as safe haven because of a certain problem in their country, what they are doing is a mere saving, uniting, and storing of amount in a most volatile assent present now. That is not a safe haven, that is the only choice they have for now because of inflation and protests. But look at the price now even if some countries are going in with bitcoin, I've never seen such significant change in price for a quite long time.

And since Bitcoin's price is not stable right now, do you not consider it as a safe haven if in case the country where you are leaving right now is caught in so much turmoil your fiat currency might turn into a worthless piece of paper anytime? Volatility is indeed a concern but in a country where there are so few options, I would rather risk on that option. In those countries, Bitcoin is the safe option right now.

I think instead of looking at bitcoin as a safehaven for some countries, they should see it more as permanent tool for the recovery of their economy. Bitcoin has been a great help for a lot of countries already and we are alreadys seeing the progress and benefits it has brought to them. We cannot rely alone on fiat, technology is quickly innovating as time passes by and we should be flexible enough to ride on the change that is occuring most specially in terms of the monetary system of the world which will dictate the fate of the economy of different countries.

And in Hong Kong too. I read reports last time that cryptocurrency especially bitcoin was being favored or favorite crypto they used. Well, it is not surprised because a bitcoin is safe, portable and reliable too. Truly, bitcoin becoming a better option in countries that is having trouble, unstable, etc. IMHO, this situation can add to the global adoption of cryptocurrency.

The  main reason for the shift is the choice of the people, they might not have any other options in a hyperinflation and there is no point in a holding a currency where the base valuation keeps on going down and they need to either convert those to a currency that is impervious to the inflation and some have chosen bitcoin over that fiat currencies and that is the recurring theme in all the affected places for the past few years and it will continue to grow in the future.

Not just that, it is also the mindset that the available fiat paper currency is losing value year after year for decades. Either you move your money to Dollars or Gold, but now you have the choice with something better, Bitcoin.

The money value decline in different countries experience different levels of progression. This means the decline of fiat is much about the regulations and plans that governments take forward. Gold being a global asset for investment is preferred based on its value that don't crash that easy. Now bitcoin gets added as a choice, this got the higher risk but assures of being a safe haven in countries like Argentina where the economic scenario is very worse.

I think this is a policy of tightening demand for Bitcoin in Argentina. With such a high price difference, no one wants to buy bitcoin anymore, which will cause disadvantage for the crypto market when losing large customers in Argentina. but I also understand this because the government only wants people to be safe. They realize that the crypto market is just a manipulative market and its value will soon become 0 anytime. That's why I think this is a reasonable policy, does anyone think the same as me?

I have already mentioned Hong Kong. There are also other countries out there whose economic, political, and social structures are shaking hard that the status quo is on the verge of collapsing, or has collapsed in some cases. These situations will cause law and order to lose their solid foundations so that even their fiat system is rotting. When this happens, no bank is safe, no currency is safe. Bitcoin is a nice option as it is global and does not bend according to a certain country's status.

I wonder how long bitcoin is going to keep being the backup plan of people and when it will become the main plan, I do not own a lot of bitcoin but thanks to it if I wanted I could exchange by bitcoin for more fiat than what I have in my bank account.

And if governments keep printing money we will get to the point bitcoin will be many times more valuable than what it is now and governments will not be able to ignore bitcoin anymore but at that point it will be too late and an important part of the whole population will prefer to use bitcoin instead of fiat.

People should not make it as a main plan for making money or a store of value because first, bitcoin is volatile so it is risky and there is a high chance for people to lose their money when they put it on bitcoin since the market is a combination of emotion and manipulation. It should be still fall under back up because people should learn to diversify so they will not become frustrated if something goes wrong with bitcoin.

yes in venezuela is very profitable there because there currency is almost not worthless, they use this way to avoid that, maybe after using crypto their economy is continue recover, i know it wont fast and run smoothly.
but atleast they make develop before their currency going dead.

American country have accepted bitcoin after Venezuela and now Argentina try to accept bitcoin as legal currency payment, have been revolution change payment from traditional become modern payment where give benefit with higher profit by using bitcoin and altcoin as currency payment, have to change payment from USD become bitcoin because keep increase with higher price always by using bitcoin.

BTcoin is safer than most developing countries' money. You can carry it very easily and it is very easy to transfer. Some doors for Bitcoin are now opened. This market has been trading for 10 years. Bitcoin may be required.

Bitcoin is indeed safer than most developing countries, but Imo there are stablecoins that more worth investing in (if your money were blown away by own govs)

Bitcoin has many advantages over traditional currencies, personally I do not travel a lot but it is very easy to see that if I did bitcoin will have the advantage of being accepted all over the world and what it is even better no one will ever know that you are carrying bitcoin with you unless you decided to tell this information to other people.

This is important because the fees of exchanging your currency to another one and sending that money to another country can be very high but with bitcoin this is not an issue.

Bitcoin has been and is still being a safe haven for some countries and the number of these countries keeps on rising, especially countries that has been undergoing a stormy market and economic situation. Investors especially in Argentina probably sought safehavens, which happened to be bitcoin, to lessen their exposure to the losses that the market turbulence might bring to them. So for them to avoid losses of assets they found bitcoin a safe haven while the mainstream market stumbles.

Depends on where you are traveling, but I'd rather use the easy use case of a credit card than trying to deal with crypto currencies in foreign languages. As a safe heavon in a failing fiat society it is indeed very useful.

Without a doubt, when a country has economic and inflation problems, there is an increase in demand, in this case Bitcoin is the protagonist, a large percentage may increase due to the great fear of people to protect their money due to an imminent fall in the economy local, based on this, market speculation grows, in this article they explain what happened in Argentina: Bitcoin Sees 4% Premium in Argentina as Peso Plummets 30% (https://cointelegraph.com/news/bitcoin-sees-4-premium-in-argentina-as-peso-plummets-30), a similar case is what is happening in Iran today, as demand has grown a lot and Bitcoin is in order of the $ 24k , Bitcoin Selling for $24,000 per BTC in Iran as US Tensions Escalate (https://cointelegraph.com/news/bitcoin-selling-for-24-000-per-btc-in-iran-as-us-tensions-escalate), it is an effect that generates panic.

Bitcoin can indeed be an alternative universal currency replacing the dollar or other currencies that can be accepted throughout the world. But bitcoin cannot be the solution for all existing problems. Let's think rationally for fluctuations in the value of bitcoin is still a stumbling block for mass adoption. We can only predict and grope about the future of bitcoin.

Learn from the history of damage that has been caused by FIAT money on the global economy. The use of currencies that have no intrinsic value brings massive damage to the world economy. Will we repeat the same mistake by using bitcoin which has no guarantee to sustain the world economy.

While it is a slow process we are slowly seeing the economies of the world showing more and more problems and people are not going to stand and see how they lose everything they have worked so hard be destroyed by the policies of a few politicians and bankers.

They will do what they can to thrive in those conditions and if that means adopting a currency like bitcoin they will do it, I am sure governments are not happy but there is not much they can do against a decentralized currency.,

Let's say that people with a bit of intelligence and initiative seek (and find) ways to defend their wealth from the greed and above all from the stupidity of their governments.
Bitcoin is definitely a good way to do it.

Developing countries have the opportunity to spread for bitcoin. But it can be a revolution for countries with a poor economy. People can keep the money as bitcoins so they don't lose value. In this case, the official currency collapses. Bitcoin price movements can make the economy much worse.

If at any point in time bitcoin really becomes widely adopted by the population of a country and they prefer to use it over their currency then bitcoin is not going to be the reason for the collapse of that currency.

Bitcoin will be nothing but the symptom of something going horribly wrong in the economy of that country, but while bitcoin has been adopted in some countries with economic difficulties that adoption has not been so widespread so we have no idea if this is actually going to happen at some point in time.

Over the next few years we will get to see a lot more nations like this as well, not just in places like Argentina, Iran, Venzuela or such but there will be a lot more nations that are not in economical similar situations but still safe and sound but people of those nations not really trusting their own currency will be investing into crypto as well. Many nations are not having record breaking inflation but weak against euro or dollar will move towards bitcoin mainly to keep their store value and that will increase the price of bitcoin a lot.

It is still a long way to go but I say in 5 years we will see bitcoin as an investment not just to make money but also save your worth as well all around the world. Hopefully nations will not be affected horribly by it but I doubt it.

With central banks monopoly over people's money its normal for people to seek alternatives to fiat. They should have their own freedom to use their own cash not be restricted by some banks alone. Luckily bitcoin has been invented for these purpose, bitcoin is the example on how a currency should be. To not oppressed, exploit and monetized its users, if they dont correct this ways then BTC might just take over the payment system.

Yes because the government cant controll cryptocurrency.  Actually its a good news since bitcoin in argentina means expanding and become more valuable.  But I think that thing can affect their economic status.

By doing this, they also preserve the value of their earnings as long as Bitcoin doesn’t lose value. In countries with very high inflation like Argentina, their government money loses value too quickly.

I think bitcoin is difficult to be able to take over the conditions of exchange and transactions for exchanges in a country because it can make the price unstable and will experience a lot of price movements so that it might make some people lose, so maybe bitcoin is not suitable if used as an exchange for all over the world who have very little supply and find it difficult to get bitcoin.

That’s great :D there are lots of places that are totally different and where people are showing no interest in Bitcoin, but the Argentines are strongly adopting it. Where I live is a completely different case because everyone is afraid of to make use of Bitcoin except some the techies, just like me.

Though I’m happy that cryptocurrency adoption has been growing a bit in my country, and now I do find people living in the same country that are interested in cryptocurrency, though it’s mainly online that I see them, but I’m still happy because it’s unlike before when I hardly see anyone.

In Argentina it is very feasible that it occurs, since inflation and new rigorous rules about obtaining FIAT money such as the dollar is being very monitored by the government, the only thing that they have discovered so far that they can shelter their money is in Bitcoin , gold is clearly another option, but it certainly turns out to be more complicated to do so.

The advantages are many when moving to Bitcoin, because if the local currency continues to fall, the bitcoin causes it to continue its value or increase, while creating a change given by the Central Bank and a black market where the amount is clearly available To acquire, for that reason is that clearly a country with inflation and economic problems the best way out is Bitcoin without a doubt.

If the Argentine authorities could not maintain the stability of the peso, they should not impose restrictions on the purchase of foreign currency. They essentially put their citizens in a hopeless position. It is good that Bitcoin is not controlled by any government agencies. The population can at least exchange the rapidly devaluing peso to Bitcoins.

I was really surprised when I read the article in the opening post that in Argentina the condition was experiencing an economic crisis,
the government instead limit the amount of dollars could buy per month. But I'm also happy to hear that the presence of bitcoin is
becoming a safehaven currency in Argentina. And I hope that bitcoin will also become a safeheaven in other countries affected by the
economic crisis. Because it is indeed one of the goals bitcoin was created to help human life for the better.

Few government understand this and due to which they are not ready to make it legal in their country or even encourage this crypto as their fear that it can eff t their Fiat currency , tax would not be collected as people can misuse it etc.

When more countries get into the active participation of bitcoin usage automatically the growth will progress in a much stabilized way than just growing in a manipulative manner. People moving to bitcoin is all because of the goodness it has got, as well as the inflation happening with traditional fiat of different countries.

Bitcoin is a universal currency that anyone around the world can easily access. It is the only true global currency and Bitcoin would always come to rescue if people find it difficult to believe in their own currency. Bitcoin is independent from the government's created pyramyds. Let the entire world exchange for once and for all with bitcoin ditching fiat.

The people who see bitcoin as safe heaven is keep increasing. They are acquiring it because they think that their wealth will be protected and secured if they invested in bitcoin. People are now focusing on how they will overcome the next financial crisis. There is a prediction the next financial crisis is about the crash of the dollar because of the bubble that happen in many years. People want safe investment and they think bitcoin is a safe heaven for them but for me it is not true because there are still risks that we should consider.

It is without a doubt a very unfair policy, but once you understand that governments are not in place to help people but instead to keep their power and if possible to increase it then it makes complete sense why they are doing that.

They are imposing those restrictions on the ability of people to obtain foreign currency because if they didn't do that then their currency will crash and they do not want that because if that happened not only that will damage the economy and the honest people of Argentina that will also damage their image to the point it will be impossible for them to remain in power.

The government is always blamed for failing to maintain a country's economic and political stability. The failure of the Argentinean government to keep the value of the peso down despite limiting USD purchases is not entirely the fault of the government. Moreover, the new Argentine government underwent a transition from Macri to Fernandez.

Argentina's uncertain domestic conditions include:
- Political conditions through preliminary elections won by opposition groups led to the absence of investment because there was no certainty of political stability.
- Severe drought has cut Argentina's agricultural exports and increased the country's current account deficit. Food commodity exports are Argentina's biggest foreign exchange earner.
- High expectations for leaders who fail, because they receive debt from the IMF even though people refuse.
- Reduced foreign exchange reserves, which are spent to maintain the exchange rate and increase the benchmark interest rate to 45%. Investors were frightened by Argentina's foreign debt heaps which eventually pushed investors to withdraw money from the market.

Actually, the government's move to control the currency is the right action, but the carry trade operation carried out by global investment managers to benefit from the volatility of the Argentine peso causes the Argentine economy to deteriorate and ineffective currency control.

Carry trade refers to borrowing money from sources of low-interest rates (developed countries, especially America), and investing in regions with higher interest rates (developing countries - Argentina). Investors get extraordinary results because Argentina offers a high return investment. In addition, investors in trading bring profits in other ways. When investors borrow in USD and invest in the Peso, they tend to make more money when the USD depreciates or the Peso expands. through the risk of 'foreign exchange exposure', if the Peso strengthens or the USD depreciates during the investment period, then the investor will benefit because he will get more USD back when he liquidates his investment.

Carry trade can still be profitable as long as the interest rate differential is higher than the dollar's appreciation. When America implements Quantitative Tightening (QT) the impact will result in the stagnation of the money supply in Argentina and thus cause appreciation of the USD due to shortages.

Bitcoin can play their political how preliminary elections won by president look happy and agree for legal using bitcoin as payment currency, without participated with preliminary elections never see bitcoin will accept in many countries and become best payment currency in the world, ten years ago bitcoin just become watcher with preliminary elections without choose which one have to support.