Argentina struggles with yet another financial crisis! - page 3.

Osayo

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Quote from: MrsBlockchain on September 06, 2018, 01:52:37 AM

Argentina struggles with yet another financial crisis! Is it time for the Argentinians to create their own crypto community currency instead of repeating hyperinflation once again? In Nairobi Kenya, Bancor has started an initiative for the local citizens to trade tokenized community currencies peer-to-peer without counter party risks. While Argentina is suffering with Dejavu.
https://www.reddit.com/r/cryptocurrencynews/comments/9dfr3j/argentina_struggles_with_yet_another_financial/

I came across the news of the current financial crisis in Argentina on Aljazeera today. But do you really think crypto solve the problem? I sincerely doubt. Maybe the government should think of some austerity measures. But maybe it hasn't come to that yet.

timerland

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Quote from: MrsBlockchain on September 06, 2018, 01:52:37 AM

Argentina struggles with yet another financial crisis! Is it time for the Argentinians to create their own crypto community currency instead of repeating hyperinflation once again? In Nairobi Kenya, Bancor has started an initiative for the local citizens to trade tokenized community currencies peer-to-peer without counter party risks. While Argentina is suffering with Dejavu.
https://www.reddit.com/r/cryptocurrencynews/comments/9dfr3j/argentina_struggles_with_yet_another_financial/

Creating

Hyperinflation is the result of the government mismanaging the economy.

In that sense, the use of cryptocurrencies can only hedge against hyperinflation for the users themselves. Just like gold and silver, they do not 'stop' hyperinflation from occurring, but provides a store of value in which investors can hold their wealth in a proven store of value.

Any country could realistically fall into hyperinflation at any given time simply because of the fact that all fiat currencies are centrally controlled and can be debased. Argentina based on its track record can definitely be the next country to fall into this, and this is echoed by the article here. But it's definitely not just a one nation thing. It's a worldwide risk, which is why I think everyone should hold some BTC, precious metals, or both for the long run.

sandraonas

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Quote from: Gozie51 on September 06, 2018, 11:04:32 AM

Bad economic policies are usually responsible for sure inflation. The government of Argentina has not been proactive to tackle the issue of unemployment there plus that there foreign policies have not been too favourable to exportation, making the standard of living to be high.

Failure of government to create an environment for economics activities to thrive will erode the value of current assets, let's hope the inflation rate doesn't go over the roof

pitiflin

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Quote from: MrsBlockchain on September 06, 2018, 01:52:37 AM

Argentina struggles with yet another financial crisis! Is it time for the Argentinians to create their own crypto community currency instead of repeating hyperinflation once again? In Nairobi Kenya, Bancor has started an initiative for the local citizens to trade tokenized community currencies peer-to-peer without counter party risks. While Argentina is suffering with Dejavu.
https://www.reddit.com/r/cryptocurrencynews/comments/9dfr3j/argentina_struggles_with_yet_another_financial/

No. Please no crypto for solving hyperinflation, it would only make things worse. If there's hyperinflation, introduce laws, and borrow loans to lower it down, not introduce a new form of currency. That's like falling for your own death. Each country has different scenarios, so if one country does something, doesn't mean another country should do the same. Crypto isn't meant to curb down hyperinflation, assholes will make it much worse. If you don't get why, you don't understand how crypto works. Don't forget that the world is in recession, that's so bad, one can only imagine. Yet no one wishes to talk about it.

sandraonas

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The government in most parts of the world is faced with real problems and they are adopting the old methods of printing more fiats without an underlying assets backup other than trust in government. It creates a bigger problem when that trust is questioned

BitHodler

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Quote from: davis196 on September 06, 2018, 07:18:04 AM

The government will have to cut it's costs and raise some taxes,in order to balance the budget.
The real problem is that it might create banking panic,which will lead to bankcrupcy and hyperinflaiton.

They already squeezed the most out of their economy in terms of taxation, so how far do you think they'll go through with that? People there are one or two steps away from a massive breakdown right now.

The government there needs to be more creative with finding a temporary solution to cover its wounds, otherwise we'll see even more capital flow out of the country, which is something they at all cost want to avoid.

If people for once stop waiting for the situation to turn bad in order to stand up, they will be able to comfortably avoid landing in a situation where they are no longer capable of avoiding a financial blow.

People (even in well functioning economies) should by default hedge a certain part net worth.

Anarchist

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Quote from: vlad230 on September 06, 2018, 05:15:35 AM

I wonder what is causing this hyperinflation in Argentina. I know it was the same story back in 2016.

They are saying the video that political decisions are causing this but usually only happens for countries that are in a "direct" conflict with the US like Turkey or Iran and this usually happens once in a decade not every two years.

https://www.youtube.com/watch?time_continue=80&v=ykvUAD11PUA

Quote

the real problem is that the government has borrowed so much. They are borrowing, central government borrowing has gone from $63 [billion] to over $140 billion. And they really didn’t have to do it. And they’ve burned through their central bank reserves, as well, at a high rate.

evergreendog

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These are the type of events that will make crypto rise again, governments around the world can't be trusted with currency. Decentralization is the only option to make currency fair for the people.

ronics

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bad economic regulations are always responsible for real inflation. The Argentine government has not been active in order to pay attention to the issue of lack of jobs there as foreign regulation is less interested in exporting, which makes the standard and new technology so high.

Gozie51

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Vave.com - Crypto Casino

Bad economic policies are usually responsible for sure inflation. The government of Argentina has not been proactive to tackle the issue of unemployment there plus that there foreign policies have not been too favourable to exportation, making the standard of living to be high.

Binugon

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Quote from: MrsBlockchain on September 06, 2018, 01:52:37 AM

Argentina struggles with yet another financial crisis! Is it time for the Argentinians to create their own crypto community currency instead of repeating hyperinflation once again? In Nairobi Kenya, Bancor has started an initiative for the local citizens to trade tokenized community currencies peer-to-peer without counter party risks. While Argentina is suffering with Dejavu.
https://www.reddit.com/r/cryptocurrencynews/comments/9dfr3j/argentina_struggles_with_yet_another_financial/

The weakening of the Argentinian currency has been the trigger for rising inflation, the drought that occurred in Argentina also triggered the crisis because the largest foreign exchange contribution came from agricultural exports.

davis196

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Quote from: Johnyz on September 06, 2018, 06:39:20 AM

Quote from: vlad230 on September 06, 2018, 05:15:35 AM

I wonder what is causing this hyperinflation in Argentina. I know it was the same story back in 2016.

They are saying the video that political decisions are causing this but usually only happens for countries that are in a "direct" conflict with the US like Turkey or Iran and this usually happens once in a decade not every two years.

Its very unfortunate for this country to experience again 2 years after the previous crisis. I think this kind of situation in a country will around soon around the world, currently here in my place the Inflation rate increase and make its new all time high after 9 years. Second world financial crisis might happen soon, maybe cryptocurrency can help that country and its people but I think its hard for them to adopt it since government are still not making decision about cryptocurrency.

There's no hyperinflation in Argentina,just a recent 15% drop of the national currency against the US dollar.
The government will have to cut it's costs and raise some taxes,in order to balance the budget.
The real problem is that it might create banking panic,which will lead to bankcrupcy and hyperinflaiton.

Johnyz

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Quote from: vlad230 on September 06, 2018, 05:15:35 AM

I wonder what is causing this hyperinflation in Argentina. I know it was the same story back in 2016.

They are saying the video that political decisions are causing this but usually only happens for countries that are in a "direct" conflict with the US like Turkey or Iran and this usually happens once in a decade not every two years.

Its very unfortunate for this country to experience again 2 years after the previous crisis. I think this kind of situation in a country will around soon around the world, currently here in my place the Inflation rate increase and make its new all time high after 9 years. Second world financial crisis might happen soon, maybe cryptocurrency can help that country and its people but I think its hard for them to adopt it since government are still not making decision about cryptocurrency.

tomahawk9

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Cats on Mars

Quote from: vlad230 on September 06, 2018, 05:15:35 AM

I wonder what is causing this hyperinflation in Argentina. I know it was the same story back in 2016.

They are saying the video that political decisions are causing this but usually only happens for countries that are in a "direct" conflict with the US like Turkey or Iran and this usually happens once in a decade not every two years.

Didn't watch the video, but perhaps they're saying "political" to refer to some of the economic reforms made by Argentina's president, Mauricio Macri.

About your first question, they're not going through hyperinflation. And there are some factors that could explain the recent financial crisis: their currency (Peso) is devaluing, it's been like this in 2018, investors aren't interested in an emerging market such as Argentina that's been having financial issues, this combined with the fact that they've had such a slow economical growth in the past year, and have almost 30% inflation, kinda explains why they're having such a crisis.

But it seems like the Central Bank of Argentina (BCRA) is negotiating a deal with the IMF so that they can provide funds (some people say it'll be around $30 billion, some others say $50 billion), that way the central bank can provide liquidity to stabilize the foreign exchange market.

Dimon8

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It is possible that next winter in such a situation as it turned out Turkey, Argentina, Venezuela, there may be half the world. Many take strange political and economic laws that are contrary to development.

vlad230

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I wonder what is causing this hyperinflation in Argentina. I know it was the same story back in 2016.

They are saying the video that political decisions are causing this but usually only happens for countries that are in a "direct" conflict with the US like Turkey or Iran and this usually happens once in a decade not every two years.

MrsBlockchain

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Argentina struggles with yet another financial crisis! Is it time for the Argentinians to create their own crypto community currency instead of repeating hyperinflation once again? In Nairobi Kenya, Bancor has started an initiative for the local citizens to trade tokenized community currencies peer-to-peer without counter party risks. While Argentina is suffering with Dejavu.
https://www.reddit.com/r/cryptocurrencynews/comments/9dfr3j/argentina_struggles_with_yet_another_financial/

Topic: Argentina struggles with yet another financial crisis! - page 3. (Read 598 times)