Javier Milei, an avid Bitcoin supporter, won the Argentinian presidential election, triggering significant fluctuations in Bitcoin in the country’s market. As soon as the news of Milei's victory was released, the price of Bitcoin rose rapidly in Argentina, rising from 13 million pesos to 13.2 million pesos, just one step away from touching its historical high of 13.17 million pesos. This price peak occurred on November 16, when Milei became a popular candidate on the decentralized prediction platform Polymarket.
Recent Bitcoin Price Trends Milei's victory is more than just a political change. As president, he proposed a series of reforms aimed at addressing the inflation of the Argentine peso and the shrinking wealth of the people. His proposals include abolishing the peso and the central bank and adopting the US dollar as legal tender. This move not only shows his dissatisfaction with the existing monetary policy, but also hints at his favor for digital currencies, especially Bitcoin. Milei's victory and the subsequent monetary policy changes provide an observation window for countries around the world, especially those facing high CPI, currency fluctuations and political turmoil. These countries may consider taking similar measures to stabilize local currencies and resist the impact of economic instability. Bitcoin supporter Javier Milei was elected president of Argentina, and the crypto market rose in response. The election of Javier Milei became a landmark event for Argentina's turn to digital currencies. Milei has repeatedly promoted the benefits of Bitcoin and cryptocurrencies in public, winning the support of many Argentines who are distressed by the sharp depreciation of their national currency. He once said bluntly, "Bitcoin is a response to the central bank scam, returning the control of currency to individuals and private enterprises." Milei's view is in sharp contrast to the support of other heads of state, such as Japanese Prime Minister Fumio Kishida and British Prime Minister Rishi Sunak for cryptocurrencies. His position is undoubtedly the most radical. In the economic difficulties, Bitcoin has quickly become popular in countries such as Ukraine, Turkey, and Argentina, and Milei was successfully elected President of Argentina in this context. During the campaign, he promised to abolish the central bank and the peso and switch to the US dollar to deal with the inflation disaster facing Argentina. In his vision, after the closure of the country's central bank, Bitcoin will serve as an important tool to combat inflation.
After Milei's election, the price of Bitcoin rose to $37,000, showing the market's positive response to his policies. At the same time, according to research by Ark Invest, Argentina's Bitcoin adoption rate even exceeded that of El Salvador, which is known as the "Bitcoin Country". At the end of 2021, only 12% of Argentine smartphone users purchased cryptocurrencies, but by April 2022, this proportion had grown to 51%, coupled with 27% of consumers claiming to be buying cryptocurrencies regularly, showing that the Argentine people are very receptive to cryptocurrencies. This unique situation in Argentina provides fertile soil for the development of cryptocurrencies. As Argentina's inflation rate soared to 121% in October 2023, people are increasingly inclined to use Bitcoin and US dollar stablecoins to protect their property. This phenomenon not only shows the urgency of Argentina's domestic monetary policy, but also provides an important reference case for other countries when considering adopting cryptocurrencies. A considerable number of underdeveloped countries are maintaining a more open attitude towards crypto assets and actively seeking change.
1. Venezuela supports Petro at the national level:
In Venezuela, more than 10.3% of the population has invested in cryptocurrencies, showing a high level of acceptance of digital currencies among the public. The state-backed Petro cryptocurrency reflects the government's attitude towards digital currency innovation. At the same time, Venezuela's inflation rate of up to 1,946% provides an ideal environment for exploring cryptocurrencies as legal tender.
2. Mexico takes the lead in developing a legal framework for encryption in Latin America:
The Mexican government’s Advanced Technology Policy law, enacted in 2018, paved the way for the legality of cryptocurrencies. The enactment of this law, coupled with the support of political leaders, suggests that Mexico may adopt cryptocurrencies as part of its economic system in the near future.
3. Nigeria uses crypto assets to stabilize economic turmoil amid high inflation of fiat currency:
Faced with the challenges of currency depreciation and high inflation, Nigeria has become another potential country to adopt cryptocurrencies. Nigerians are open to emerging digital currency solutions, especially in the context of the 209% depreciation of the national currency, the naira, and the high inflation rate of 20.77%.
4. The economic downturn in Brazil and South Africa prompted residents to use crypto assets as a means of wealth preservation:
Both countries are also facing challenges of currency depreciation and high inflation. In Brazil, the real has depreciated by 218% against the US dollar, while South Africa's rand has depreciated by 103%, prompting residents to consider adopting cryptocurrencies as a means of protecting wealth. The economic pressures in these countries have led residents to consider buying cryptocurrencies, reflecting a distrust of the traditional financial system.
We can see clear regional differences in the global interest in Bitcoin. In countries with stable currencies, such as the UK and Germany, interest in cryptocurrencies is relatively low. In contrast, in emerging markets like Brazil, India, and Mexico, inflation may be the main driving force behind the adoption of cryptocurrencies as a "currency alternative". In addition, uncertainty about cryptocurrency regulation and the need for educational resources around the world have also had an impact on its adoption. In these countries, Bitcoin and other cryptocurrencies are not only investment tools, but may also become a stable option in economic turmoil. Argentina may be just the beginning, and more countries may embrace Crypto in the future With the election of Javier Milei as president in Argentina, an important question emerges: Will other countries follow Argentina's example and embrace Bitcoin and other digital currencies? Milei's victory is not only a political change, but also a challenge to the traditional monetary system. This may herald a shift in the future outlook and attitude towards Bitcoin worldwide. As inflation becomes a global problem, more and more countries may consider digital currencies as a means to deal with economic instability. In the future, we may witness Bitcoin playing a more important role in the global economy.
