Bitcoin blasts past its 2021 all-time high in Argentina, but hyperinflation outpaces gains
Bitcoin’s 150% gains over the last two years in Argentine pesos is no match for the country’s 300% inflation in the period. Argentina has grappled with hyperinflation for several decades due to populist policies that have led to budget deficits. As time marches on, the likelihood of Argentina, home to 47 million Latin Americans, facing a full-scale currency collapse looms. But what are the prospects for increased adoption of Bitcoin (BTC), given its outstanding track record when priced in the local Argentine Peso (ARS) currency? Throughout its history, the Argentine government has frequently resorted to the practice of inflating the money supply, be it through bank deposits or government bonds. Notably, Argentina's aggregate money supply M1, comprising currency, demand deposits, and other checkable deposits, has surged from 2.81 trillion ARS in July 2019 to a staggering 10.66 trillion ARS, marking a substantial 277% increase over the span of three years. What happened to Bitcoin’s...
