The consequences for the country, which is already partially insolvent, are enormous: the inflation rate rose by 50% last year. The domestic currency, the ARS, also lost massive value. The bitter truth of inflation is also reflected in the Bitcoin price.
Bitcoin course and Argentina: a long history
Already in November last year we reported about a Bitcoin course explosion in Argentina. Because while the price of 1 BTC in November was “just” $ 9,300 internationally, in Argentina you had to pay a massive risk premium of around 30%.Unfortunately, this phenomenon has returned due to the worsening of the crisis. Before we get into the data, let’s take a look at the USD / ARS exchange rate. So let’s take a look at how much the US dollar rose against the Argentine pesos last year.
More money and fewer shares: inflation at its best
Inflation and the associated devaluation of the Argentine peso have one clear consequence: Although the Argentines pay nominally more money, they receive fewer shares with a constant Bitcoin exchange rate. The interest rate has risen enormously due to the high inflation rate. So if you want to borrow money, you can expect interest of 40.50 percent or even more.