The Aztec currency shows a significant decline against the US dollar. United States
Bitcoin is performing better in the face of the coronavirus pandemic and global economic downturn.
Mexico’s national currency, the peso, has depreciated 21.5% against the US dollar so far in 2020. The loss is due to a decline in gross domestic product (GDP) and an economy that is beginning to feel the effects of the coronavirus pandemic and low oil prices.
For this Thursday, April 30, the Mexican peso was priced at 24.11 units per dollar, while for January 1, the value was 18.90 pesos per dollar. These are historical lows that are putting pressure on the peso and other Latin American currencies because of that Investors have sought refuge in the United States currency.
What is happening to the devaluation of its currency in Mexico is also being observed in other countries in the region. In the first four months of the year, the Brazilian real fell 26.5%, the Colombian peso lost 17.1%, the Argentine peso another 10.1% and the Chilean peso 9.74%%.
Analysts believe that Mexico’s economy, the second largest in Latin America, could fall by up to 10% in 2020. The first quarter saw a stumble of 1.6%, the largest decline in three months 11 years, according to the Reuters agency.
Bitcoin is gaining ground
While the peso is facing a complicated situation in Mexico, Bitcoin has so far increased by 19.7% in 2020. The main cryptocurrency was $ 7,193 per BTC. This Saturday, May 2, however, the price was $ 8,960 per unit, according to the CryptoNews market index, with an advance of $ 1,767.
Bitcoin is growing in the same global landscape as COVID-19 spread, economic recessions, low commodity prices and widespread quarantines. I mean What affects economies and their national currencies is also exposed to Bitcoin in its first major crisisbut with cheaper results.
What has happened to Bitcoin has escalated so far that it will surpass gold as the most powerful commodity so far by 2020.
The best cryptocurrency rating would go to the next one cut in half of Bitcoin, which will occur in about 10 days and will cut the currency’s spending in half.
Unlike national currencies, which central banks or national governments can use to “control” their economies, Bitcoin has a limited issue of 21 million units. Currently, this emission is 12.5 BTC for each mined block (approximately every 10 minutes) as an incentive for network miners. After this cut in halfthe emission is reduced by 50% to 6.25 BTC.
The bitcoin boom shows that in recession or health crises like the current one, despite the volatility of the cryptocurrency market and the traditional markets for stocks, commodities or currencies, it can represent an alternative to value preservation.