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Dollar / Bitcoin shoots up in Argentina- TREND CRYPT

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The Dollar / Bitcoin index in Argentina touches $ 110. In what was a disastrous half week for this important index for Argentine Bitcoiners. Will the Dollar / Bitcoin level stop rising, or will it continue to hit record highs?

Dollar / Bitcoin Index

The composite index of the Dollar / Bitcoin pairs emerges in Argentina as a natural response to the restrictions imposed by the governments in turn for the sale / purchase of the US dollar. Which is the main refuge for many Argentines who do not want to see their savings reduced over time.

And they do not want to see their savings reduced for various reasons. The first is that unfortunately Argentina suffers the second worst inflation in Latin America, only behind Venezuela. Its inflation could exceed 50% at the end of this year.

The second is the behavior that the value of its exchange rate has had in recent months. Which we see in the following graph, the trend is to continue rising exponentially (increasingly faster), if all conditions remain unchanged.

As we see, the price of the official dollar in Argentina is approaching 66 Pesos. This represents an increase of more than 14% in the value of the US dollar compared to the Argentine peso. What is few words means that the Argentines, for this variable alone, are 14% poorer in a matter of 4 months.

Bitcoin in response to Argentines

We could be listing reasons here all day why one of the main concerns of Argentines is safeguarding their wealth. Such as the lack of confidence of the general public in the state, the foreign over-indebtedness in which the country is, or the imminent entry into default of this debt.

And this is where Bitcoin (BTC) comes into play to help Argentina escape the problems caused by the governments in power, no matter if they are on the right or the left, all politicians tend to be the same. For this, and many more things, were the reasons why today we have our weapon of mass destruction.

But, apparently, nothing can be easy for our Argentine brothers. The price of each Bitcoin in the main Argentine crypto exchanges is much higher than in international markets.

For example, in Ripio it is $ 794,393.49 pesos for the purchase. While in SatoshiTango it is from 747,609.16 pesos. Which means that the price of each BTC token in Argentina is around $ 12,036 and approximately $ 11,300, at the official exchange rate.

While in international markets, for example, on the world’s largest crypto exchange, Binance, each BTC is trading at around $ 7,000. What we see is a premium of $ 4,000 and up to $ 5,000 more.

conclusion

This leads us to the Dollar / Bitcoin index out of control, compared to last week and has reached $ 113 and $ 107 respectively. There are so many distortions today in the Argentine market, that even between them there is a substantial difference.

Intuitively, one could think that Argentines, in order to avoid the maximum quotas ($ 200 per month), imposed by their government on the purchase of dollars, would use cryptocurrencies. But, nothing seems to be easy for the Argentine people.

As if that were not enough, there is also a parallel market in Argentina (Blue Dollar), with a value close to $ 100.



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