Why Argentines May Prefer Bitcoins Over Pesos in Two Charts

Kyle Torpey @kyletorpey
January 23, 2014 20:51 UTC

Many Bitcoin critics don’t think bitcoins could ever become a viable form of money because the price is far too volatile. While this may be true in the United States and parts of Europe, there are certain parts of the world where people are in desperate need of a new, decentralized form of money. The US Dollar/Argentina Peso exchange rate was the Chart of the Day at Business Insider as it lost 13% of its value shortly after new economic restrictions were put in place. Just take a look at what has happened to the Argentine Peso over the past month:

US Dollar/Argentine Peso spot rate for the past month via CNBC.com.

The problem looks even worse when you take it out to the past year:

US Dollar/Argentine Peso spot rate for the past year via CNBC.com.

For what it’s worth, the price of bitcoins has been rather stable today at around the $810 mark. This is interesting considering the news that TigerDirect is now accepting Bitcoin as a payment option for their customers. Many people will argue that using bitcoins as money doesn’t make sense in the United States, Western Europe, Australia, and other countries with relatively stable currencies, but it becomes harder to argue the case for the Argentine Peso against bitcoins with each passing day. As more economic restrictions are thrown at the Argentine people, we are bound to see an increase in Bitcoin adoption in this South American country. Bitcoin volatility should continue to decline as it matures into an currency with use in nearly every country around the world.

Last modified: April 20, 2014 18:28 UTC