TL;DR
Argentina’s new president loves Bitcoin, which pushed BTC’s value up 3%, including ~$22B value of worth to its market cap in 24hrs.
Whereas 3% would not sound like a lot, a 3% transfer in Bitcoin means ~$22B of latest worth (which is roughly your entire market cap of Solana).
Full Story
See that man pictured above? Is he:
A) The bass participant in your pal’s uncle’s band, who do largely Bon Jovi covers, and are nonetheless holding on to the hope that they will someday “make it”…
Or
B) A center faculty steering counsellor who rides a motorcycle and wears the identical leather-based jacker every day (all in an try and be seen as ‘the cool trainer’)?
In the event you answered A or B, you are mistaken. The right reply was:
C) The brand new president of Argentina (critically).
And he has some fairly wild concepts relating to central banks and the Argentine peso…particularly, he needs to do away with each and dollarize the economic system.
Translation: he needs to do away with central banking in Argentina, and transfer the native economic system from utilizing Argentine pesos, to US {dollars}.
Questioning what this has to do with crypto?
Properly, should you’ve spent sufficient time within the house, you may know that this form of anti-central financial institution rhetoric usually goes hand in hand with a love for Bitcoin.
And Javier Milei (that is his title btw) is not any totally different.
He hasn’t outright stated that he needs to make Bitcoin authorized tender within the nation, nevertheless it would not be stunning if that confirmed up in future plans.
In consequence: Bitcoin jumped 3% in a 24hr interval.
Which does not sound like a lot, however a 3% transfer in Bitcoin means ~$22B of latest worth (which is roughly your entire market cap of Solana).
Okay, however why such excessive measures?
Properly, the Argentine peso’s shopping for energy has been lower in half over the previous yr on account of inflation…and your entire nation’s GDP has barely doubled over the previous 100 years.
Which is all to say:
Issues (Argentina’s economic system/monetary system) have not been nice → they’re now getting worse → given all of that, the voting inhabitants is choosing what would have beforehand been thought-about an ‘excessive’ financial resolution.
However hey, if our financial savings misplaced half their shopping for energy in 12 months, perhaps we would be open to chopping our losses and embracing a overseas foreign money.
Who is aware of ¯_(ツ)_/¯ hopefully, we by no means have to seek out out.
