“In Argentina the peso stopped being a refuge of value, while the BTC as a safeguard of long-term value, has been a good investment”as stated by Nicolás Litvinoff, Director of Estudinero.com, who in conversations with Cointelegraph shared his impressions about his opinion on the value of the dollar in the region.
In the South American country, inflation and the economy are linked to the dollar as a result of a devalued peso. According to Litvinoff, there are two aspects that influence the value of the national currency: the first aspect is due to trust towards the rulers, and the second is related to the defense power that a country has to protect itself.
“Since Bretton Woods”, decades ago; The gold standard was abandoned, and the value of the fiat currency has a lot to do with two aspects: one, is the confidence of the people in their political leaders and the other, is the power of defense and attacks that countries have ”, says the Director of Estudinero.com.
In that framework, Nicolás Litvinoff refers to the strength of the dollar as a global currency, Yet the “semi confidence” that US citizens still have towards their political leaders despite the cracks that may exist between the Republican and Democratic parties of that country.
Contrary to what happens in Argentina, where the indicator that defines the activities carried out by its inhabitants, goes through the valuation of this US currency.
For the entrepreneur, in the country trust in political leaders is “very little”and also has a “very impoverished army”, in terms of technology and logistics, it refers. This, by way of explaining why in the country, for a long time, “The peso stopped being a refuge of value or savings. Where all registrable assets that are bought and sold in Argentina, that have a value beyond daily expenses, are thought of and often traded in dollars”as stated by Nicolás Litvinoff.
Given this context, in Argentina there are many opinions about the undulation of the national currency, such as a country that needs or consumes more dollars than it receives from its exports, an inflation that increasingly adopts the dollar as a refuge currency , or on the contrary, a growing external debt. Facts that translate into affirming that the Argentine economy is bi-monetary.
In this regard, Litvinoff believes that: “This particularity of a bi-monetary economy does not occur in practically any other country in the region, except Venezuela. Because in Brazil, it is difficult for them to think about exchanging dollars, since they have their national currency in their heads, which is real. And that is what causes the dollar, whenever there are moments of turbulence, to reevaluate very strongly against the peso, or the peso devalues against the dollar, which is the same thing, and that is exactly what we are going through now. , given the distrust towards the current presidency”, narrowed the businessman.
Crypto assets in Argentina
Argentina is one of the Latin American countries with the highest penetration of crypto assets, and it is still growing. This is largely due to the context that exists in the country: inflation, devaluation, controls, to name a few.
Finally, in his opinion, Litvinoff believes that these reasons are what have led Argentina to be one of the countries where crypto assets have the greatest penetration, since they are seen as a way to become dollarized, such as stablecoin and Bitcoin (BTC)”as a long-term store of value. that against the Argentine peso, has turned out to be an assertive investment in the last ten years, he concluded.
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