Currently, Argentina is facing a worrying inflation crisis of more than 100%. The Argentines, distraught, no longer know what to do to counter the constantly galloping poverty in their country. A Reuters report published on April 14 reveals that nearly 40% of them live in poverty. Not to mention that they suffered economic losses of several billion dollars due to one of the worst droughts in their history. Faced with this situation, the co-founder of MicroStrategy advises Argentines to turn to crypto.
Bitcoin (BTC) as protection against a difficult economic climate
Argentina’s presidential spokeswoman Gabriela Cerruti recently tweeted about the inflation-related challenges faced by Argentines. She said: ” We know, and it hurts and occupies us, how much it affects daily life and every family “. She indicated that she hoped that a drop in inflation would soon be observed in the country. That said, for the co-founder of MicroStrategy, who recently beefed up his investment in bitcoin, Argentina Should Turn to Flagship Crypto. Michael Saylor indeed declared on April 22: “ If you live in Argentina right now, you need Bitcoin “.
Thus, the leader believes that bitcoin (BTC) could serve as a hedge against inflation and financial instability. It should be clarified that his company has been investing in the flagship crypto for several years. In August 2020, MicroStrategy decided to make bitcoin its primary cash reserve asset. The company then bought 21,454 BTC tokens by paying $250 million.
At the time, Saylor had explain : “ Our decision to invest in bitcoin at that time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe create long-term risks for our corporate cash program. , risks that should be proactively addressed “.
Many analysts and crypto players believe, like Michael Saylor, that bitcoin is a real hedge against inflation. This is the case of crypto influencer Anthony Pompliano who explained last March how the flagship crypto could protect against the massive price increase. ” Bitcoin is in my opinion the best hedge against inflation said the crypto influencer.
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