On Aug. 12, Argentina’s peso tumbled more than 30 percent after its incumbent president President Mauricio Macri lost the primaries by a huge margin. The center-right politician was defeated by his left-wing rival Alberto Fernández.
Bitcoin bull Anthomy Pompliano didn’t waste any time to predict that Argentina could be the first country to face a currency crisis during the looming global recession.
BTC is currently trading with a $1,000 premium on Finnish P2P exchange LocalBitcoin due to the lack of liquidity in the country.
It seems like Argentina, unlike China, does see a Bitcoin premium (localbitcoin, ~$1000 premium) any exchange there has decent liquidity?— Dovey Wan 🗝 🦖 (@DoveyWan) August 12, 2019
The key diff is: In China there is sufficient local supply of Bitcoin (miners, exchanges etc) but Argentina is lacking local liquidity
However, cryptocurrency trader Alex Krüger slammed those ‘bitcoiners’ who want to capitalize on the ongoing crisis in Argentina. He further claims that the Argentinians hedge against peso with the help of the US dollar.
Before bitcoiners start using Argentina (my country) as excuse to yell "Buy Bitcoin" and generate clicks and sell newsletters.— Alex Krüger (@krugermacro) August 12, 2019
Argentines want to protect themselves against the peso losing value versus the dollar. And for that, they buy dollars.