Argentina’s Bitcoin demand rate has been increasing steadily and is set to continue spiking, as the country is predicted to be suffocated by its debt.
According to a from Arcane Research, Argentines are anticipating possible effects on the Argentine pesos, as the government is set to default on its debt. Because of the possibility of increased inflation, Argentines have now turned their attention to Bitcoin.
Arcane Research’s tweet shows that peer-to-peer trading platform LocalBitcoins has seen a rise in Bitcoin bought with Argentine Pesos, by 1028% since January 2018. In addition, USD and Bitcoin volumes have also climbed by 139% and 407% respectively.
According to a Financial Times , the government did not meet up with scheduled payments worth $500 million, on three foreign bonds. This has kicked off a countdown to a formal default for next month.
Argentina’s inability to pay is not at all shocking. The country has had its fair share of financial problems, in addition to the effects of the ongoing coronavirus pandemic. While this is an unfortunate turn of events for the traditional financial markets, it has proved extremely bullish for cryptocurrencies. As people anticipate a crash in the value of fiat, cryptocurrency is seen as the next best thing.
LocalBitcoins recorded a similar in Bitcoin volumes, back in November.