Topic: Has Argentina proven BTC to be a store of value class asset? - page 2. (Read 286 times)
Its same for Turkey.the fact is we nor Argentina are not into crypto for being fan only.our money are losing its value everyday so people try crypto, usd, gold etc.its good for crypto ofcourse
This Bitcoin story in the shore of Argentina is really proving the value of this cryptocurrency as a great and reliable store of value even if it is still very volatile and not yet considered as very legal by different governments. We have to remember that Bitcoin was born during the time of financial crisis hence we should not be wondering if it is functioning as a safe haven in a country like Argentina and I am sure that this is not going to be the last it is acting as such as we are entering into the period of global economic and political uncertainties.
Argentinians who are into cryptocurrency and bitcoin is increasing and that is good news. Just like any thirld world countries who engage in cryptocurrency and forex what drives people into engaging into the cryptocurrency market is profit. People do not look at cryptocurrency as a currency but rather a tool for profit. This maybe the reason as of today but we will see in the future when big institutions and commercial centers will be accepting bitcoin as a form of payment then that is the time that people see bitcoin as a currency.
Do not if you had been aware of that, but this week Bitcoin made a small step (as speaking of its scale) which turned out to be a giant leap for cryptocurrencies in general.
In Argentina, there was an election, and its outcome caused mass panic - both the local currency and stocks simply crashed. And it can be expected that yet another time it will cause a crisis and hyperinflation.
And here comes BTC. The smart investors seeing the current situation started switching to Bitcoin in order to save their investment funds and savings from being burned during such a situation.
The local price of BTC (it must be stressed that in Argentina most of the transactions are OTC, so then we are not 100% sure about the price or the real scale) on exchanges momentarily jumped by over $1000.
Why is it so important, yet overlooked by many events? The reason behind it is very simple. BTC was created when the last global recession just ended. Since that time and creation of the term "digital gold" crypto-enthusiasts, investors and academics had been wondering if - just like precious metals - Bitcoin will be regarded as a store of value or not.
The example of Argentina seems to confirm that in the case of a global crisis Bitcoin:
1) Will have its market volume to skyrocket (at expense of stocks, forex or other forms of investing), as at least some investors will transfer their portfolios to BTC (and some alts as well)
2) Will gain reputation (somehow FATF guidelines incorporated into domestic legislation can have a positive influence)
3) Considering both points above combined this should have a significant influence upon confirming the reputation of BTC as a store of value as well as heavily impact its price (a sharp increase of demand).
As well, considering that in general the global recessions are initiated by the US market crash every 7-10 years, and the last took place a bit over 10 years ago, we can expect such thesis to be confirmed/abolished pretty soon.
Any thoughts
?
In Argentina, there was an election, and its outcome caused mass panic - both the local currency and stocks simply crashed. And it can be expected that yet another time it will cause a crisis and hyperinflation.
And here comes BTC. The smart investors seeing the current situation started switching to Bitcoin in order to save their investment funds and savings from being burned during such a situation.
The local price of BTC (it must be stressed that in Argentina most of the transactions are OTC, so then we are not 100% sure about the price or the real scale) on exchanges momentarily jumped by over $1000.
Why is it so important, yet overlooked by many events? The reason behind it is very simple. BTC was created when the last global recession just ended. Since that time and creation of the term "digital gold" crypto-enthusiasts, investors and academics had been wondering if - just like precious metals - Bitcoin will be regarded as a store of value or not.
The example of Argentina seems to confirm that in the case of a global crisis Bitcoin:
1) Will have its market volume to skyrocket (at expense of stocks, forex or other forms of investing), as at least some investors will transfer their portfolios to BTC (and some alts as well)
2) Will gain reputation (somehow FATF guidelines incorporated into domestic legislation can have a positive influence)
3) Considering both points above combined this should have a significant influence upon confirming the reputation of BTC as a store of value as well as heavily impact its price (a sharp increase of demand).
As well, considering that in general the global recessions are initiated by the US market crash every 7-10 years, and the last took place a bit over 10 years ago, we can expect such thesis to be confirmed/abolished pretty soon.
Any thoughts
? Jump to: