Whenever a big fat whale on Wall Street says that Bitcoin could be a bubble, it gives me want to write about why I "hodl" my Bitcoin.
I could teach monetary theory and describe the characteristics of a currency and compare them to Bitcoin, or I could talk about the shortage curve of the Bitcoin supply, or from there. another myriad of reasons. long term. Today, however, I would like to talk about adoption.
A look at South America will help you understand why Bitcoin has become such a phenomenon.
In my last article, I gave small examples of what has already happened in Brazil in monetary terms and how that affected my perception of the value of Bitcoin. Today, I want to move to Argentina, and address the reasons for the adoption of Bitcoin by this country.
Populist governments do not know mathematics; after a while, the money is exhausted and it becomes necessary to use the "creativity" in their accounting. It is not by chance that there are at least two recent economic facts that have had an impact on the Argentines and that have made them aware of the value of a deflationary currency.
The first was the "Corralito", when in 2001 the government froze all money in bank accounts for a full year, only allowing extremely limited withdrawals for necessities Household.
In 2011, exactly 10 years later, the exchange control "cepo" set up by the former president Cristina Kirchner was created. This movement has led the country to revive the symbols of hyperinflation from the 1980s, as the figure of "arbolitos" – money changers stopped (like trees) at the corners of tourist places – and stores " cuevas "at the black market exchange for those who wanted to sell dollars at a much better price than in the government's official exchange rate, basically the market was paying double
Two years after the # During the emergence of Bitcoin, Argentines felt betrayed by their own national currency, suffering from highly manipulated exchange rates. Those who suffer the effects of such monetary policy are likely to look favorably on a new deflationary currency, such as Bitcoin. Argentina is ahead of many South American countries in terms of adoption; their crisis began in 2011, while Brazil began in 2014.
Wall Street Bankers with their Million Dollar Bonuses Could Not Understand Bitcoin, or Make High Declarations of Their Penthouses in Manhattan . But for ordinary people suffering in crippling economic conditions, Bitcoin could literally keep them alive while their national currency falls like a stone.