[2018-09-23] In Argentina, Investors Flock to Safe-Haven Bitcoin

[Betwrong]

I agree, regular citizens of Argentina can hardly make an impact on BTC price by their actions. But if the Argentina's Central Bank decided to convert a part of its Foreign Exchange Reserves, which currently amount to over 46 billion USD, into Bitcoin the situation would be different. Unfortunately I don't speak Spanish and maybe that's why I can't find more reliable sources, but at least several English language news sites, including the one from the OP, are talking about such possibility.

We are yet to see some major positive news that are coming from governments, so far we've only seen governments banning or restricting Bitcoin, and most of the time there was very little reaction, especially in long term. It will be very interesting to see how the market will react to something like a central bank adopting Bitcoin, Bitcoin markets can be very sensitive to bullish news (like it happened with starbucks recently), but ultimately I think the same principle holds - the reaction is proportionate to the influence of a government.

From my perspective most governments have become more and more friendly towards Bitcoin and cryptocurrencies in general. That's why I'm very optimistic regarding Bitcoin's future. This stereotype that what all the governments want is to destroy Bitcoin has to be dismantled because in reality we've been witnessing the opposite for more than a year, to say the least.

[1715037237]

1715037237

[1715037237]

1715037237

[1715037237]

1715037237

[1715037237]

1715037237

[1715037237]

1715037237

[timerland]

So far, the efforts of Argentina’s Central Bank to stabilize the peso have been to no avail. As a result, according to Taylor, the Central Bank is exploring the possibility of diversifying into Bitcoin.

https://bitcoinist.com/in-argentina-investors-flock-to-safe-haven-bitcoin/

I honestly don't know how they are going to stabilize the peso just from diversifying their reserves into bitcoin alone. But holding a decentralized store of value like bitcoin or even precious metals could definitely help in the long term.

What's important here is that regular Argentinean people should be investing in bitcoin and hedging against the inflation that is taking away from their real wealth (>30%).

Even in a bear market, bitcoin offers much better storage of value than the peso at this point. And with other foreign currencies not as accessible, it seems like bitcoin could be a good alternative. Not to mention that in the long run, not only will BTC hold its value, there may even be slight profits to be made given that adoption will continue to rise.