- Bitcoin volumes in Argentina are rapidly accelerating ahead of a possible default on USD 65 billion of foreign debt
Bitcoin volume in Argentina in terms of Argentine Pesos (ARS) is up 1,028% since January 2018. Although a significant fraction of this Bitcoin volume increase can be explained by devaluation of the ARS, real volume has significantly risen too, since the volume in terms of Bitcoin has risen by 407% and the volume in terms of USD has risen by 139% in the same time period.
(1/2) Argentines are dumping record amounts of pesos for #bitcoin on @LocalBitcoins, as the government is about to default on its debt (https://t.co/rSYFq8gDSD) and the currency is suffering from inflation. (Source: @Coin_Dance) pic.twitter.com/oTFYadike4
— Arcane Research (@ArcaneResearch) April 23, 2020
In recent weeks this surge of Bitcoin volume in Argentina has become even more pronounced. This is likely due to the fact that the Argentinian government is about to default on USD 65 billion of foreign debt, which will ruin the country’s credit rating and will cause liquidity in the economy to dry up even further, in addition to causing the ARS to enter hyperinflation mode.
Essentially, with the Argentinian economy and ARS on the brink of collapse, Argentinians are rushing into Bitcoin in order to protect their funds, since if they leave their money in ARS it will literally evaporate.
Zooming out, almost all nations around the world are experiencing serious economic problems right now, so the trend in Argentina may be a precursor for what will happen in many other countries, and although this is tragic, it could lead to rapidly increasing Bitcoin adoption worldwide.
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