Who Is This Guy and How Did He Just Add $22B to Bitcoin’s Price?

TL;DR

Argentina’s new president loves Bitcoin, which pushed BTC’s worth up 3%, including ~$22B value of worth to its market cap in 24hrs.

Whereas 3% does not sound like a lot, a 3% transfer in Bitcoin means ~$22B of latest worth (which is roughly the complete market cap of Solana).

Full Story

See that man pictured above? Is he:

A) The bass participant in your good friend’s uncle’s band, who do principally Bon Jovi covers, and are nonetheless holding on to the hope that they’re going to sooner or later “make it”…

Or

B) A center faculty steerage counsellor who rides a motorcycle and wears the identical leather-based jacker every day (all in an try and be seen as ‘the cool instructor’)?

Should you answered A or B, you are unsuitable. The proper reply was:

C) The brand new president of Argentina (significantly).

And he has some fairly wild concepts relating to central banks and the Argentine peso…particularly, he desires to eliminate each and dollarize the financial system.

Translation: he desires to eliminate central banking in Argentina, and transfer the native financial system from utilizing Argentine pesos, to US {dollars}.

Questioning what this has to do with crypto?

Nicely, if you happen to’ve spent sufficient time within the house, you will know that this kind of anti-central financial institution rhetoric sometimes goes hand in hand with a love for Bitcoin.

And Javier Milei (that is his title btw) isn’t any totally different.

He hasn’t outright mentioned that he desires to make Bitcoin authorized tender within the nation, however it would not be surprising if that confirmed up in future plans.

Because of this: 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 the complete market cap of Solana).

Okay, however why such excessive measures?

Nicely, the Argentine peso’s shopping for energy has been reduce in half over the previous yr as a result of inflation…and the complete nation’s GDP has barely doubled over the previous 100 years.

Which is all to say:

Issues (Argentina’s financial 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 of an ‘excessive’ financial answer.

However hey, if our financial savings misplaced half their shopping for energy in 12 months, possibly we might be open to slicing our losses and embracing a overseas foreign money.

Who is aware of ¯_(ツ)_/¯ hopefully, we by no means have to seek out out.

Source link