Latin America uses Bitcoin as a haven of value, according to an expert
Andreas Antonopoulos, a well-known Bitcoin expert, spoke about the role that cryptocurrencies will have in the countries of Latin America.
Andreas Antonopoulos, a well-known Bitcoin expert, spoke about the role that cryptocurrencies will have in the countries of Latin America. According to Antonopoulos, the adoption of digital assets is growing significantly in Latin American countries and believes that the acceleration of adoption that has been taking place in recent months is due to the devastating effects that the current economic crisis, induced by the COVID pandemic- 19, it is causing regional economies that have a very precarious infrastructure. In this context, citizens see Bitcoin as a great opportunity to keep their wealth protected.
During the process of forming a coin, experts agree that the first stage is usually to become a reserve value: gold is a clear example of this operation. If we analyze the history of Bitcoin from its creation in 2009 to the present, we can see that it perfectly meets this characteristic, since its investors have not only maintained their wealth but have increased it. However, the second characteristic of a currency is its capacity as a medium of exchange. In this aspect, Bitcoin has not yet established itself in the world economy as a means of massive exchange, however, many citizens of developing countries are being attracted to this new technology due to the serious problems that their national economies have: this is the case of countries like Venezuela, Argentina and Colombia. In this regard, Antonopoulos stated: "The main use of Bitcoin today in these areas is the preservation of wealth and that means investing in Bitcoin as a way to save. As in the past, they would have all their savings in dollars."
In addition, many of the Latin American countries have implemented restrictions on their citizens to purchase foreign currencies such as the dollar or the euro. In Latin America, the dollar was always the currency used as a store of value, however with the recent gigantic issuance of dollars by the United States Federal Reserve, the value of the dollar will decrease significantly in the future: consequently, neither It is a good idea to save in fiat currencies. In this context, people are forced to look for alternatives to protect their capital. Antonopoulos commented: "In many of these countries it is impossible to open dollar accounts or, what is worse, the government has demonstrated more than once that it is willing to enter and confiscate the dollar accounts by converting them. Choose a local currency, the Force, add ridiculous exchange rates that do not correspond to the real value, thus confiscating the economy of the people who kept those accounts."