Milei's Surprising Victory Sends Bitcoin to Record Heights in Argentina

Milei’s Surprising Victory Sends Bitcoin to Record Heights in Argentina

Updated: 17 August 2023

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In the wake of a shocking victory by libertarian candidate Javier Milei in Argentina’s presidential primaries, Bitcoin has soared to unprecedented heights in the nation. This crypto-friendly economist’s win comes as a surprise, and it has caused a ripple effect in Argentina’s economic landscape. On the heels of Milei’s triumph in the primary elections held on Sunday, Bitcoin’s value in Argentina has surged, setting a new record.

While the Argentine peso (ARS) has suffered a significant downturn as investors react nervously to Milei’s unexpected win, Bitcoin has remained resilient. According to data from CoinGecko, Bitcoin reached an all-time high of 10.2 million ARS in the aftermath of Milei’s victory. Though it has since slightly retreated to 10.1 million ARS, it continues to defy the broader market trends.

This peak in Bitcoin’s value is occurring at a critical time for Argentina, a nation currently grappling with one of the highest inflation rates across the globe. The peso is consistently losing its value, exacerbating an already dire economic situation. The central bank of Argentina reports that the country is enduring a staggering annual inflation rate of 113%. This figure is alarmingly high, surpassed only by Venezuela in the region. The relentless rise in prices in Argentina, Latin America’s third-largest economy, is forcing a significant portion of the population into poverty.

Javier Milei is running for President of Argentina.

He appears to understand money, and that inflation is an unfair mechanism that advantages elites over the people and slowly robs people of their means of survival. pic.twitter.com/tj0KEztUzI

— Alex Stanczyk ∞/21m (@alexstanczyk) January 5, 2023

Despite the dismal state of the country’s traditional economy, digital assets like Bitcoin are finding increasing favor among Argentinians. According to a report from Chainalysis last year, Argentina holds the tenth spot globally for the rate of cryptocurrency adoption. This suggests that, amidst economic turmoil, people in Argentina are increasingly viewing digital assets as a viable alternative to their national currency.

Milei: An Unconventional Politician

Javier Milei, the man at the center of these unfolding events, is a unique figure in Argentine politics. Aged 52, with shaggy hair that matches his love for rock music and leather jackets, Milei is far from a conventional politician. He has consistently criticized central banks, referring to them as a “scam,” and has been outspoken in his admiration for Bitcoin, particularly praising its finite supply. “Bitcoin is the natural reaction against the scam that are central banks,” Milei asserted last year.

While mainstream media often labels him a “far-right populist,” it is apparent that Argentinians are willing to take a chance on Milei, given the chaotic state of their country’s economy. Additionally, Milei, who is adept at using social media to communicate with the public, has expressed his desire to dollarize Argentina’s economy. He also advocates for the country to keep a clear distance from communist nations, including Venezuela and China.

As Milei’s potential presidency looms on the horizon, a pivotal question emerges: Could his victory lead to Argentina transforming into a Bitcoin-friendly economy? Only time will reveal the full impact of Milei’s political ascent on the future of Bitcoin and the broader Argentine economy.