{"id":20335,"date":"2023-04-28T04:12:16","date_gmt":"2023-04-28T04:12:16","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/you-need-bitcoin-critics-insist-btc-is-too-volatile-featured-bitcoin-news\/"},"modified":"2023-04-28T04:12:16","modified_gmt":"2023-04-28T04:12:16","slug":"you-need-bitcoin-critics-insist-btc-is-too-volatile-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/you-need-bitcoin-critics-insist-btc-is-too-volatile-featured-bitcoin-news\/","title":{"rendered":"‘You Need Bitcoin’ \u2014 Critics Insist BTC Is Too Volatile \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Micheal Saylor, the founder of Microstrategy, has told people living in inflation-stricken Argentina that they now \u201cneed bitcoin.\u201d While many bitcoiners have welcomed Saylor\u2019s suggestion, a few critics have said the top crypto asset\u2019s volatility makes it an unsuitable alternative for the faltering local currency. <\/strong><\/p>\n

The Dollarization Option<\/h2>\n

As the Argentinian currency \u2014 the peso \u2014 continued with the slide that has seen it depreciate by more than 40% over the past twelve months, Micheal Saylor, the founder of Microstrategy, has chimed in by tweeting that people living in the South American country now \u201cneed bitcoin.\u201d In a subsequent tweet<\/a>, Saylor, a bitcoin critic turned advocate, also shared news about the South American country\u2019s inflation rate after it topped 7.58% per day.<\/p>\n

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If you live in Argentina\ud83c\udde6\ud83c\uddf7 right now, you need #bitcoin<\/a>.<\/p>\n

\u2014 Michael Saylor\u26a1\ufe0f (@saylor) April 22, 2023<\/a><\/p>\n<\/blockquote>\n

The tweets by Saylor, whose firm is one of the largest corporate holders of BTC<\/a>, came as reports suggested that some Argentinian politicians favor replacing the peso with the U.S. dollar. As reported<\/a> by Bitcoin.com News, the Argentinian presidential aspirant Javier Milei has said dollarization can put the brakes on inflation, which officially stood at 103.4% in March.<\/p>\n

Milei, who is seen as a frontrunner in presidential elections set to be held on Oct. 22, said he plans to shut down the central bank before starting the dollarization process. Steve Hanke, a professor of applied economics at Johns Hopkins University, has similarly suggested the South American country can only escape its present predicament by dollarizing.<\/p>\n

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Argentina has turned into an over-indebted IMF deadbeat. By my measure, the Argentinian peso has depreciated against the USD by 52% since Jan 1, 2022. ARG must dump the peso and dollarize NOW. Argentina, THE WORLD’S BIGGEST DEADBEAT. pic.twitter.com\/4HyFei1WzO<\/a><\/p>\n

\u2014 Steve Hanke (@steve_hanke) April 25, 2023<\/a><\/p>\n<\/blockquote>\n

Yet, despite the apparent widespread support for dollarization in Argentina, critics of the U.S. dollar, including Saylor\u2019s followers on Twitter, have voiced their support for his call on residents to choose bitcoin instead.<\/p>\n

Policy Brief: Argentina\u2019s Fiscal Imbalances Will Not Go Away After Dollarization<\/h2>\n

However, some of Saylor\u2019s followers on Twitter like Manu Ferrari B, a self-proclaimed \u201cliberty maximalist,\u201d have said<\/a> BTC<\/a> is too volatile and therefore it cannot be a viable alternative to the falling peso just yet. The user suggested that while it is possible for a bitcoin-backed stablecoin to become the solution, more still needs to be done. He added:<\/p>\n

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But the whole tech is not ready, yet. Most bitcoiners not living in Argentina, L\u00edbano, Venezuela will not understand this. Most bitcoiners talking about Argentina don\u2019t know what they are talking about. Completely centralized stablecoins running on fiat legacy rails are also not a solution.<\/p>\n<\/blockquote>\n

In addition to being an expensive undertaking, dollarizing the Argentinian economy would result in the country\u2019s central bank becoming subservient to the policies of the U.S. Federal Reserve. Dollarizing would also see the country\u2019s central bank losing seigniorage \u2014 the profit earned from printing currency.<\/p>\n

A policy brief published by the Policy Center for the New South on April 28, 2022, described the calls for dollarizing the economy as the \u201crevival of a zombie idea.\u201d Denouncing the Argentinian Congress\u2019 proposal to retain the greenback as the country\u2019s primary currency, the brief warned<\/a> that the country\u2019s \u201cfiscal imbalances will not be eliminated by dollarization.\u201d The brief also said dollarization would further require \u201ca selective default of domestic currency liabilities, a brutal devaluation, and\/or a unilateral conversion of public deposits.\u201d<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, DCStockPhotography \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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