Is the dedollarization of the world underway? – This is devastating news that has been ringing in our ears for the past few days. Argentina and Brazilthe two most important nations of South America would prepare to work on a common currency, and invite other Latin American countries to join them in this initiative. What if BTC (BTC) Has the solution been found? decryption.
South America, Future Cryptocurrency Adoption Pool?
These two South American nations are far from indifferent to Bitcoin’s value proposition. And more generally cryptocurrencies. Especially since 2022. In fact, last December, Jair Bolsonaroformer president of Brazil, made payment in cryptocurrencies legal. This does not make Bitcoin legal tender unlike El Salvador. But it is still a first step forward.
As for Argentina, the gasping population has been trapped for years in hyperinflation that is only accelerating over time. So much so that the Argentines, desperate, are more and more numerous a take refuge in stablecoins to escape a weight that is depreciating at high speed. Javier Mileia libertarian running for the country’s presidential election on October 22, 2023, even stated:
“The central bank is a scam. […] It is a mechanism by which politicians dupe good people into imposing an “inflation tax”. […] Bitcoin is the natural reaction against central bank scammers. »
It is therefore not surprising that the two countries are working together to establish a new currency. On the other hand, according to data from World Gold Council, central banks around the world have never bought so much gold since 1967. These unprecedented measures may be related to the desire of governments to protect themselves from the hegemony of the dollar. Banks around the world may even be preparing “for unprecedented times monetary devastation “.
While that grim future looms on the horizon, this digital gold, called Bitcoin e its quantity is limited to 21 million unitsit could serve as a lifeline for many people.
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Bitcoin, candidate in the monetary elections according to Coinbase?
In any case, this is the opinion shared on Twitter by Brian Armstrongthe head of the exchange Coin basis. This invites the two nations of Brazil and Argentina to think about the Bitcoin option.
Of course, the subject has always been thehotly debated. Some suggest that an asset that falls 70% in the bear market and multiplies its price by 10 during the bull run would make it impossible to manage and cannot act as money. Against this there is a very obvious argument. Plus the capitalization of bitcoins will be large, the less important will be the variations of its course. And indeed, the more stable it will be. With identical capitalizations, gold and Bitcoin it will swing the same way. The current volatility is therefore only temporary.
Others imply that the Bitcoin network would be too slow and fees too high to serve as a global transaction network. Again, the pro-bitcoins respond: Lightning network. A second-tier, instant, fee-free bitcoin network that is the ideal medium for microtransactions.
Who will be the next country to adopt Bitcoin as legal tender? Will there be a second one someday? Only the future will tell. Until then, we will no doubt be in for heated debate as this new UFO is called Bitcoin tries to carve out a place in the heart of our society.
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