Argentina's $10k limit on fiat foreign currencies is a boon for bitcoin!
Argentina is indirectly helping bitcoin.
On September 1st, Argentina announced capital controls for its citizens.
Specifically, that they would not be allowed to purchase more than $10k worth of foreign fiat currencies.
This is due to their peso falling considerable against most fiat currencies.
The story can be seen here:
https://cointelegraph.com/news/buy-bitcoin-says-exert-as-argentina-imposes-10k-limit-for-citizens
How does that benefit bitcoin?
According to Preston Byrne, this should help drive more demand for bitcoin.
Bitcoin peer to peer exchanges are much harder to police than fiat exchanges according to Byrne.
Which means, as the Argentinian people are cut off from other fiat currencies they will likely flock to bitcoin.
In fact, we can already see evidence of that as the price of Bitcoin is trading for a $1,000 premium on some Argentinian exchanges.
This is just another example of how bitcoin as "schmuck insurance", makes perfect sense.
It is a hedge against governments inflating their money away, and we are seeing it play out first hand in Argentina and also in Venezuela.
Stay informed my friends.
Image Source:
https://www.ccn.com/bitcoin-price-premium-surpasses-1000-in-argentina-amid-currency-controls/
-Doc
I think we will see a real UP when one major country will have its currency fail
Short the banks, long the corn!
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Haha yep!
Exactly my opinion to, crypto is the safe haven if Argentina indeed turns into a second Venezuela! The world is starting to scream recession, we should all be preparing now because if indeed it happens, crypto exchanges will have a overflow of masses and it will be too late imho! Altough, this isn't the first time Argentina imposes these laws, the last time the maximum for individuals was $1000 per month, if I'm not mistaken, the $10.000 that they are imposing now is a much bigger amount, not sure if that's a good thing or bad, with the US raising their debt ceiling, student loans near default date, a recession smell in the air, and crypto as an safe haven, not sure if those $10.000 will do anything at all if all of these systems fail one after the other... most likely those $10.000 won't do anything and anyone not hodling crypto (BTC especially) will go under with the country.
We will likely find out in the next couple years. Traditionally when the yield curve becomes inverted, I believe it takes 12-24 months before recession actually hits.
seems like Venezuela before the disaster :(
Yep, it is well on its way as well.
I wouldn't mind heading to Argentina with my bitcoin! A great place that I still think could be a great place in the future for even business! Maybe they need to be the start of a bitcoin reserve fund!
Hopefully we get someone doing something like that. Seems like as good a place as any to start...