The Virtual Viewpoint of Volatility: Bitcoin Surpasses All-Time High Price vs Argentinian Peso (ARS)
The quest for world domination from the premier cryptocurrency is getting stronger with each failing fiat currency. The traditional finance system seems to be failing one nation at a time (or a couple nations) as seen by the hyperinflation is some countries in recent years.
Venezuela, Argentine, Sudan, South Sudan, Turkey are among the countries plagued by hyperinflation as their currencies lose value rapidly. Venezuela’s bolivar is practically worthless in the country having faced a mammoth 1,000,000%+ inflation in its price.
Argentina is also facing a crisis in the moment as the peso plummeted by over 150% since January.
Argentinian peso against the dollar since 2017 (Source:XE.com)
Bitcoin on the other hand is on its golden staircase to heaven after witnessing a 145% boost in price year to date. BTC broke its 2019 yearly highs earlier today crossing the $8,500 USD mark to currently trade at $8,785 USD.
The $600 spike in BTC’s price earlier today ensured the coin made history in Argentina as it hit its all-time high against the peso. Having crossed the previous price set during the Bull Run in 2017 where BTC’s price hit $20,000 USD.
Bitcoin's price against the dollar since 2017 (Source: Coinmarketcap)
The fall of the Argentinian peso
The past few months have been a nightmare for the peso. The currency dropped from $0.053 USD in January to $0.021 USD today representing an opposite reaction to BTC’s price. In BTC’s terms, one coin is equal to 396,000 pesos, a figure that beats the previous ATH set in December 2017 by 54,000 pesos.
While Bitcoin has witnessed a significant rise in its price since the start of the year, the fall of the plays the major role for the latest achievement by the pioneer cryptocurrency. One key issue is the upcoming elections in October and the risks associated with it. A report on FT states,
“The driver for the surge in prices is the fear that the peso is yet again on track for hefty losses, even after the IMF authorised the use of its funds for the Argentine central bank to intervene in the currency if approaching elections spook local and foreign investors into dumping peso assets.”
Bitcoin surpasses all time high vs the Argentinian peso
As the peso collapses, Bitcoin is slowly rising to its previous highs closing in on the $9,000 USD mark. The sharp rise in price in 2019 has since seen the coin record its highest price against the Argentinian peso (ARS).
A number of factors have contributed to the rise in Bitcoin’s price including the rising adoption rates in countries facing hyperinflation, the developments on the platform such as the LN network, use by big corporations such as Microsoft and the spike in volumes traded in the past few weeks.
Bitcoin as a store of value
Bitcoin is labelled as the future of decentralized currencies and censorship resistant token that allows global transaction settlements fast and secure. It provides a new philosophy of dealing with money. The soar of BTC’s price against the peso indicates the cryptocurrency is developing as a strong store of value against hyperinflation ridden economies.
Furthermore, the cryptocurrency is currently less than a year away from its halving, a signal of an upcoming bullish momentum on the coin. Analysts expects the coin price to boost past the $10,000 USD mark in the coming weeks and further break its ATH price after the halving.
Other fiat takedowns
Argentina is only one of the many countries turning to Bitcoin to save themselves from the horrors of hyperinflation. Turkey and Sudan are also in the deep pit of despair as the Turkish lira and the Sudanese pound continues to lose value.
Bitcoin is currently trading 22,000 lira shy off the all-time high price reached in December 2017 of 75,000 lira.