After Venezuela, Bitcoin Is Now a Solution for Argentina

After Venezuela, Bitcoin Is Now a Solution for Argentina

The big gate of cryptocurrencies is open to all and anyone is free to learn how to do business with it. As each day goes by the popularity of these currencies rises more and more, and they attempt to enter all fields from entertainment to economy, Blockchain and cryptocurrencies are growing.

After Iran and Venezuela, it is now Argentina’s turn to help its economy with cryptocurrencies.

According to what has been said in the reports, Tim Draper met with Argentina’s president Mauricio Macri on Wednesday, March 20, to talk about the perspective of this Latin American country’s economy.

This American investor suggested to the president that it is better to legalize Bitcoin for the betterment of his country’s economy. Draper believes that Bitcoin is a proper and ideal tool to fight the economic problems of Argentina.

Argentina, as the third largest Latin American economy and the second largest South American economy, is faced with emergency due to a sharp fall in its currency value. The special condition of the Argentine economy has made this country to ask the international monetary foundation to facilitate their loan payments. The international monetary foundation has agreed to pay Argentina a loan of $50 billion.

Betting on Bitcoin and Pezo

Draper is an electric engineer and an alumnus of Stanford University who came to prominence in 2014 after buying 29,656 Bitcoins.

In his meeting with the president, Draper talked about the potential of new technologies like Blockchain and cryptocurrencies to improve the many problems of the Argentine economy, like the decrease in its currency value which has led to brain drain. Also, he proposed this condition that if Pezo, Argentina’s official currency, has more value than Bitcoin, Draper will build this country’s economy with his assets, but if Bitcoin ends up having more value than Pezo, then it should be declared this country’s official currency.

Another Prediction of Bitcoin’s Future

Further, in the meeting, Draper talked about his interview with Maria Julieta Rumi and said that he believes Blockchain and Bitcoin are a revolution much bigger than the internet. He added that his is a good time for Argentina to accept this technology and this will change the banking, business, and financial system.

He also emphasized his positive stance regarding Bitcoin in that interview. Draper has predicted that the Bitcoin value will reach to $250,000 during 2022 and 2023 and by then it will constitute 5 percent of the world stock market. He claimed that in the future only criminals will use fiat money.

At the same time, Argentina has taken a more friendly approach toward developing Blockchain space and cryptocurrencies. Early in March, the government of Argentina agreed to join investment in Blockchain projects backed by Binance and LatamEx Latin American exchanges.

How Will the Future of Economy Be Like with Bitcoin?

The economic problems that have crippled most countries in the world are the result of wrong policies and inefficient governments, printing paper money more than what is required leads to the decrease in the currency value, and there are sometimes embezzlements that multiply the economic turmoil.

What is the main claim of cryptocurrencies is exactly avoiding the worsening of such conditions. These currencies will greatly lead to transparency, and since there are a specific amount of them available, they are not limitless like paper money, and you cannot print them, and ergo you cannot reduce their value. Based on numerous reasons put forth by some prominent economists and investors, if these currencies are entered in the economy and replace the national currencies, they can be the solutions to any kind of problem in any country’s economy.

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