“Increasing price velocity floors” are consolidated.
Bitcoin and cryptocurrencies are a haven for individuals in the face of inflation.
We do not expect any weakening [de la inflación] for the rest of the year,” said economist Ana Albín, who works as an analyst for the consulting firm Ecolatina. He adds that “a floor above 130% would be reached in 2023.”
According to this financial expert in Comments According to Bloomberg, “The inflationary process developed a momentum of its own that is difficult to halt given expectations that have once again been uprooted, the lack of credibility of policymakers in coordinating expectations and the absence of a stabilization program.” All of this, according to Albin, “It’s helping to consolidate ever-higher price velocity floors.”.
A little over a year ago, Argentine President Alberto Fernández declared a “war on inflation”. So far, the defeat of the South American country in the war is obvious.
As CriptoNoticias reports, in this election yearSeveral presidential candidates have placed the fight against inflation at the heart of their campaign promises. Javier Milei, for example, says that he will dollarize Argentina and that he wants to “dynamize the central bank”; Horacio Rodríguez Larreta claims to have a “comprehensive plan”, although it will not be fully revealed until he is elected president; Patricia Bullrich will drive reforms in the state to restore the state’s solvency; Kirchnerism criticizes merchants and producers but does not propose a solution; and the Left Front intends to sever ties with the International Monetary Fund (IMF) and let big businessmen pay Argentina’s debts.
Bitcoin technology to save the individual
In this context, More and more Argentines are using Bitcoin (BTC) and other cryptocurrencies, mainly stablecoins, to protect against the rapid depreciation of the Argentine peso. This practice is exacerbated by the restrictions the government places on buying and selling foreign currency, preventing residents of the South American country from legally buying dollars.
The digital currency created by Satoshi Nakamoto, while highly volatile in the short term, has proven to be an effective antidote to fiat money devaluation. This is particularly evident in the case of Argentina: while BTC is far from its all-time high when measured in US dollars, it recently broke a new record when its price is measured in Argentine pesos.