The South American nation’s precarious economic situation appears to be exacerbated by the quarantine and coronavirus pandemic. How is it presented? Bitcoin BUY NOW in the midst of this complex situation?
The word “economy” in Argentina can be a headache for a long time. With more than a dozen different exchange rates, rampant inflation, and a range of fiscal and monetary policies that spawn ghosts from other nations, the Argentine today is concerned about what can happen in national finances and, above all, how it will happen to yours Affect bag.
Studies show that The Argentine economy loses between $ 500 and $ 1 billion a day. [La Nación] From these points of view, the forecasts reflect that the decline in Argentina’s gross domestic product will be between 2 and 2.5%. For an economy that closed with 53.8% inflation in 2019 (the second highest inflation in the region and only surpassed by hyperinflationary Venezuela), this data can be presented as problematic. [Agencia Efe]
We spoke to to find out more about the situation in the Argentine economy Nicolas Litvinoff, Economist and author of various financial books, who first made it clear to us whether the situation in the southern nation could lead to default.
In Litvinoff’s opinion it is Argentina has been in default since the last quarter of the Mauricio Macri government. He made it clear that the country’s economy was in danger of falling behind on payments earlier, and so the International Monetary Fund had to finance the nation to avoid getting into the situation. However, Litvinoff mentions that this is not enough. He mentioned that the default could be seen from the moment that Mauricio Macri’s then Minister of Economic Affairs had to re-profile Argentine peso debt when it was debt that had to be paid in both pesos and dollars.
He added that despite the fact that the state is currently canceling commitments and payments to private bondholders and some accounts at the IMF, The situation the Argentine economy is in today with the coronavirus crisis makes it impossible to repeat these payments in the future.
Litvinoff clarified the default situation of the Argentine economy and made it clear that the state could not meet its commitments before the current crisis. Everything that will come with the corona virus will simply make it more difficult for the state to pay. According to the specialist, this is not the fault of the current government, but has been brewed since the previous government.
Is Argentina heading towards hyperinflation?
Given the emerging situation Many have thought that hyperinflation is a tangible reality for Argentinians. However, Litvinoff told us that this scenario considers it “very difficult” because a context of growth or production capacity is required 100% and none of these scenarios are what we have or what we expect.
The scenario projected by Litvinoff for Argentina is an increase in unemployment, a decrease in production, a decrease in demand and consumption, and he believes all of this will result Price increases are limited by falling demand.
Despite the fact that the Argentine government has to print money to cover and alleviate the problems pandemic is causing in various sectors of the country, Litvinoff believes that the situation itself will prevent a hyperinflationary scenario from becoming apparent in the economy . austral.
Can Argentina assert itself in the midst of the coming global crisis?
Despite the upcoming standard scenario, Litvinoff mentioned this Argentina “very well positioned to withstand the effects of the upcoming global economic recession”.
As a basis for his opinion, he initially claims that the country has taken the appropriate measures to limit the effects of the coronavirus on the Argentine population. This is to reduce the number of people infected and deceased by the virus.
Likewise, measures taken by the Argentine government to “shut down” the economy can help reduce the effects of the global recession, as Litvinoff believes that those who are more global or more open will be seen. most affected.
Litvinoff recently mentioned that the economic crisis that will loom over the United States will worsen The pressure from the Americans on the Latin American and especially the Argentine economies will be much less. Without this pressure, Argentina will be able to apply Keynesian economic policies to stimulate demand and consumption, measures the expert believes will be needed to get out of the current difficult economic situation.
How does Bitcoin present itself given all of this?
Bitcoin emerged in the 2008 subprime mortgage crisis thanks to Satoshi Nakamoto’s brilliant mind. The design, or at least many believe, is the ideal option to deal with crises.
To find out what Bitcoin can do in the midst of the Argentine situation, we spoke to Catalina Castro, known for her YouTube channel TechconCatalina, who tells her audience about Bitcoin and blockchain technology.
Catalina did not hesitate to call Bitcoin the “solution for Argentines”. In his opinion, the Argentine economy is in a constant crisis, in which rampant inflation and the possibility of hyperinflation come together with a default and Bitcoin is presented as a list against this background.
However, Catherine made this clear “Very few people” see Bitcoin as a solution. In his opinion, there is a lack of interest among the population to look for decentralized alternatives to the situation. He sees that people are not interested in financial education. He mentioned that this is not only to be seen in Argentina, but a global situation.
Similarly, Catalina believed that the current situation of the global economy, despite the possible lack of interest, is as follows:
“The perfect framework for Bitcoin as well as financial institutions and individuals to see what it is, what it represents and what solutions it offers for humanity.”
The Argentinian youtuber mentioned that given the global economic crisis and unprecedented crisis, as well as the pandemic that has emerged as a catalyst for all of this, Bitcoin is being launched to “solve many of the problems we currently have” such as one global means of payment without disruption.
In conclusion, Catalina said yes to the question of whether Bitcoin is a solution and that it is only a matter of time, both in Argentina and worldwide, to become aware of and understand what Bitcoin represents in between the crisis. He added that this is the scenario the crypto community has been waiting for to evaluate people’s behavior against Bitcoin.
Take our survey and give your opinion on whether Bitcoin could be the solution to the financial crisis in Argentina.
Is Bitcoin the Solution to the Financial Crisis in Argentina? #Weight #argentina # Inflation #bitcoin ??
– BeInCrypto Spanish (@beincrypto_es) April 11, 2020
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