Author Topic: Has Argentina proven BTC to be a store of value class asset?  (Read 2 times)

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Has Argentina proven BTC to be a store of value class asset?
« on: August 14, 2019, 01:51:53 PM »
Do not if you had been aware of that, but this week Bitcoin made a small step (as speaking of its scale) which turned out to be a giant leap for cryptocurrencies in general.

In Argentina, there was an election, and its outcome caused mass panic - both the local currency and stocks simply crashed. And it can be expected that yet another time it will cause a crisis and hyperinflation.
And here comes BTC. The smart investors seeing the current situation started switching to Bitcoin in order to save their investment funds and savings from being burned during such a situation.
The local price of BTC (it must be stressed that in Argentina most of the transactions are OTC, so then we are not 100% sure about the price or the real scale) on exchanges momentarily jumped by over $1000.
Why is it so important, yet overlooked by many events? The reason behind it is very simple. BTC was created when the last global recession just ended. Since that time and creation of the term "digital gold" crypto-enthusiasts, investors and academics had been wondering if - just like precious metals - Bitcoin will be regarded as a store of value or not.

The example of Argentina seems to confirm that in the case of a global crisis Bitcoin:
1) Will have its market volume to skyrocket (at expense of stocks, forex or other forms of investing), as at least some investors will transfer their portfolios to BTC (and some alts as well)
2) Will gain reputation (somehow FATF guidelines incorporated into domestic legislation can have a positive influence)
3) Considering both points above combined this should have a significant influence upon confirming the reputation of BTC as a store of value as well as heavily impact its price (a sharp increase of demand).

As well, considering that in general the global recessions are initiated by the US market crash every 7-10 years, and the last took place a bit over 10 years ago, we can expect such thesis to be confirmed/abolished pretty soon.

Any thoughts ?