It is quite outlandish in the sense that the market for Bitcoin in Argentina is quite small comparatively, yet people are mining them for they feel these can be the best bet in economic turmoil. Argentina also discourages Bitcoin exchanges yet such a trend is moving up shows that people do not trust the system; rather, they trust this crypto currency when the going is tough.
Bitcoin Becoming an Alternative to Gold
Gold has always been the safest bet for people to face economic turmoil; however, now Bitcoin seems to supplement it. People now seem to keep Bitcoin for safe investment purposes. In fact, it is fast becoming a safe bet for problematic economies as it allows seamless extraction of wealth out of a bank account and into the cloud.
Hordes of Argentineans are opting for Bitcoin to stem the effects of the sliding national economy. It will only help Bitcoin strengthen its market value which was in the doldrums quite recently. The news came that though Argentina does not have a large share in Bitcoin exchange, its 1% share increased to 3% recently; this shows that the market may just get strengthened in the next couple of months.
Various Other Reasons Possible
Apart from the declining national economy, various other reasons may also be possible for increased popularity of Bitcoin in Argentina. The country has hundreds of Bitcoin supporters who cheer the news; however, some of them are also skeptic that this may also be due to the fact that Argentineans can now buy Bitcoin with their credit card at the official dollar rate which is lower than what it costs in the black market; thus, there is a huge profit if day trading is done.