Topic: Bitcoin becoming a safehaven currency in Argentina - page 4. (Read 1682 times)

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

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.

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.

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.

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  .

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.

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.

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.

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

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.

  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'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.

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.

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.

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.

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.

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 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.

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 .

When people stop trust in fiat bitcoin comes