Argentina defaulted on its international loans for the second time since 2001, and apparently the eighth time since its independence from Spain. It has been tough for the country, yet even tougher for Argentinians who have experienced capital controls, the inability to transfer money out of the country, and a falling peso — again.
On this same day, July 31, 2014, the Argentina-based bitcoin exchange Unisend experienced one of its most active trading days, hitting a month-long high. Unisend partner José Rodriguez told CoinDesk that in his experience, bitcoin trading is usually connected to changes in price, buying when prices go up and selling when they go down. However, that day’s surge was apparently not related to price.
Are people finding a safe haven away from mismanaged economies, corrupt politicians, and the gambling bankers? Bitcoin may just be the ticket to protect individual wealth.
Remember that it was not long away, just over a year, when the island nation of Cyprus experienced a bank failure. And, that failure led to nearly 50% “bail-in” of the banks, that is, where anyone with over €100,000 in the bank had half of it taken by the bank, courtesy of the government. Could this happen in other countries like Argentina? Many think it could.
To read the Coinbase articles related to this topic, click on either Argentinian Bitcoin Exchange Loses its Bank Accounts or the related article at Why Argentina’s Debt Default is an Opportunity for Bitcoin.