Bitcoin demand soars as Argentine debacle continues

Bitcoin demand in Argentina witnessed a boost amid the country’s make or break moment over its ninth straight debt default as Argentines dumped massive portions of Pesos to buy Bitcoin, a cryptocurrency research firm Arcane Research revealed on Twitter on Thursday.

Argentina’s economic condition is fragile as it continues to walk on thin ice. The country declared that it could not make yet another sovereign debt payment, which was due this Wednesday. With that, it began its countdown for the next default in payment unless it manages to restructure billions of dollars with foreign creditors.

Unfortunately for the debt-stricken country, its proposal to reduce the burden has not met well with a large chunk of bondholders. Thus, while the ever-growing debt cycle continues, practically standing in the way of economic growth, a large number of Argentinians choose to confide in Bitcoin.

Bitcoin demand goes up despite flailing economy

As per the report, the Bitcoin demand continues to surge despite the country’s failure to repay $503 million in debt this month. The citizens have shelled out a record-high number of Pesos in exchange for Bitcoin.

In fact, the Bitcoin demand has risen by 1028% since the start of the year 2018, the attached chart reveals. While the increase in Bitcoin volume was reported as a whopping 407%, the USD worth volume deposit saw a 139% increase. All this data only goes to suggest that Bitcoin’s real value and demand has only seen an upswing in recent years.

Restrictions backfire

Meanwhile, in its efforts to strengthen the native fiat currency, the Central Bank of Argentina had imposed many limitations on the crypto king and the US dollar.

From enforcing restrictions on the purchases made with the US dollar to discouraging its citizens from buying Bitcoin using credit cards, it appears that all attempts to revive its flailing currency and the economy has now backfired.

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