According to one billionaire, families in Argentina need Bitcoin, an ethical solution to local problems. The crisis in the country drags on with problems in exchange and inflation, in addition to a recent change in command of the Ministry of Economy, which has led to even more instability in the country. The local government, under the command of Alberto Fernándes, faces the scenario of the Argentine economic crisis with followed economic policies that apparently do not show results. In this way, the local population continues to observe the local currency lose more strength and at an accelerated pace. Last week, the government announced that the Argentina’s official inflation reached 64% in 12 months. With a loss in purchasing power aggressively melting, consultancies believe the country is likely to experience 90% inflation in 2022, which virtually buries the value of the Argentine Peso for good.
Billionaire issues warning to families in Argentina and says “ethical solution for financial refuge is Bitcoin”
Bitcoin is a decentrally issued digital currency and, since it was created, it has never changed its rules for issuing new coins. Thus, the predictability of the issuance makes this an innovative monetary system, created with inviolable technology and protection. However, the same cannot be said for fiat currencies, those issued by central banks, such as the Peso, for example. According to Michael Saylor, billionaire and entrepreneur who trusts the Bitcoin protocol, this digital currency is the only hope for the population of the neighboring country of Brazil. This is because the Peso has lost almost 100% of its purchasing power in the last 20 years, a clear indication that the currency does not guarantee a good quality of life for its population. For Saylor, the way central banks issue currency and inflate the monetary base is a serious problem. In this way, Bitcoin would be an ethical solution for Argentine families to prosper again, those facing one of their worst crises, in the billionaire’s opinion.
“In countries suffering from the collapse of currencies, centrally managed banks, capital controls and excessive economic regulations, corporations, individuals and families need an ethical global economic solution like bitcoin to protect their wealth and thrive.”
In countries suffering from collapsing currencies, centrally managed banks, capital controls, and excessive economic regulations, corporations, individuals, & families need a global ethical economic solution like #bitcoin to protect their wealth & prosper.https://t.co/u7JAdFmnVx — Michael Saylor⚡️ (@saylor) July 14, 2022
In practice, billionaire company faces crisis with Bitcoin
Even though it has been in decline in recent months, in the long term the price of bitcoin shows that it can indeed be a store of value, at least in Michael Saylor’s view. Last Saturday (16), he shared with his followers that his company MicroStrategy, started buying bitcoin in August 2020. On the occasion, they bought their first 21,000 coins, spending R$ 250 million for it. Since then, MicroStrategy shares have risen 73%, outperforming the main shares of technology companies such as Google, Apple, Amazon, Meta (ex-Facebook), among others.
“On August 11, 2020, MicroStrategy embarked on its Bitcoin strategy, acquiring 21,454 bitcoins at an aggregate purchase price of $250 million. Performance since then: $MSTR is +73%, GOOG is +51%, AAPL is +33%, MSFT is +23%, AMZN is -27%, META is -37%, NFLX is -61%.”
On August 11, 2020, @MicroStrategy embarked on its #Bitcoin Strategy, acquiring 21,454 bitcoins at an aggregate purchase price of $250 million. Performance since that time: $MSTR is +73%, GOOG is +51%, AAPL is +33%, MSFT is +23%, AMZN is -27%, META is -37%, NFLX is -61%. —Michael Saylor⚡️ (@saylor) July 16, 2022
In other words, the billionaire is bought into the idea he now presents to families in Argentina, who run from the local currency in its downfall. Recently, Saylor had a meeting with former Argentine President Mauricio Macri, where he introduced Bitcoin concepts to the politician.