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Interest rates in Argentina have been on an upward trend for the last decade [1], yet bitcoin is near its all time high relative to the Peso [2]. How do you exp
by deevolution 4y ago
Interest rates in Argentina have been on an upward trend for the last decade [1], yet bitcoin is near its all time high relative to the Peso [2]. How do you explain the contradiction here?
[1] https://tradingeconomics.com/argentina/interest-rate https://tradingeconomics.com/argentina/interest-rate
[2] https://tradingeconomics.com/btcars:cur https://tradingeconomics.com/btcars:cur
- zaroth 4y agoI fail to see the contradiction. The capital has already all fled Argentina, and higher rates aren’t going to entice many dollars back in.
- deevolution 4y agoThe claim is higher interest rates cause things to collapse. US interest rate go up, bitcoin go down! Argentina interest rate go up, bitcoin go up! Contradiction. What you pointed out tho is important: fiat is a confidence game at the end of the day, and it doesn't matter how much yield a fiat offers if it lacks confidence. Bitcoin is more or less a measure of how much confidence people have in their respective fiat currencies.
- eric_cc 4y agoBecause: Argentina. Not sure if you truly grasp the global impact that the United States fed policy has.