Bitcoin becoming a safehaven currency in Argentina

[NathanJB]

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.

[hello_good_sir]

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.

[CryptoBry]

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.

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.

[Google+]

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.

[Lucius]

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.

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.

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?

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.

[SaShiRaJaVu]

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.

[sana54210]

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.

[mersal]

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

Bitcoin is trading at a large premium on cryptocurrency exchanges in Argentina. Demand remains high after the nation’s central bank announced a further tightening of a limit on the number of dollars an individual can purchase from it each month.

The policy essentially forces the people of Argentina to either sink of swim in an economy with a less than perfect track record. Well, it would, were it not for Bitcoin.

According to data taken from local cryptocurrency exchange Ripio, Bitcoin is trading at a large premium in Argentina. Whereas Coinmarketcap has the price of the leading digital asset at around $9,150 at the time of writing, Bitcoin is currently selling at the South American trading venue for ARS$633,862 ($10,578).

The nation has been in the grips of successive economic crises which have seen the value of the peso plummet. In an attempt to stabilise the currency, the central bank first limited the amount of dollars an individual could purchase each month to $10,000 in September. Just days ago, it drastically increased this restriction to just $100 in physical bank notes per month.

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.

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.

[rdluffy]

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

[alyssa85]

Wait, so you can only withdraw 100 dollars worth of physical cash? That's crazy...

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.

[tenakha]

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

Bitcoin is trading at a large premium on cryptocurrency exchanges in Argentina. Demand remains high after the nation’s central bank announced a further tightening of a limit on the number of dollars an individual can purchase from it each month.

The policy essentially forces the people of Argentina to either sink of swim in an economy with a less than perfect track record. Well, it would, were it not for Bitcoin.

According to data taken from local cryptocurrency exchange Ripio, Bitcoin is trading at a large premium in Argentina. Whereas Coinmarketcap has the price of the leading digital asset at around $9,150 at the time of writing, Bitcoin is currently selling at the South American trading venue for ARS$633,862 ($10,578).

The nation has been in the grips of successive economic crises which have seen the value of the peso plummet. In an attempt to stabilise the currency, the central bank first limited the amount of dollars an individual could purchase each month to $10,000 in September. Just days ago, it drastically increased this restriction to just $100 in physical bank notes per month.

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.

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.

[Eugenar]

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.

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.

[Willitivity]

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.

[fiulpro]

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 .

[Eclipse26]

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.

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.

[rdluffy]

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 .

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

[riso2015]

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.

[AicecreaME]

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 .

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.

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.

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.

[Wayan_Pedjeng]

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.

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.

[teosanru]

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

Bitcoin is trading at a large premium on cryptocurrency exchanges in Argentina. Demand remains high after the nation’s central bank announced a further tightening of a limit on the number of dollars an individual can purchase from it each month.

The policy essentially forces the people of Argentina to either sink of swim in an economy with a less than perfect track record. Well, it would, were it not for Bitcoin.

According to data taken from local cryptocurrency exchange Ripio, Bitcoin is trading at a large premium in Argentina. Whereas Coinmarketcap has the price of the leading digital asset at around $9,150 at the time of writing, Bitcoin is currently selling at the South American trading venue for ARS$633,862 ($10,578).

The nation has been in the grips of successive economic crises which have seen the value of the peso plummet. In an attempt to stabilise the currency, the central bank first limited the amount of dollars an individual could purchase each month to $10,000 in September. Just days ago, it drastically increased this restriction to just $100 in physical bank notes per month.

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.

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.