store of value

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Bitcoin price hits all-time highs across Argentina, Nigeria and Turkey

October 27, 2023 Coin Telegraph

Argentine Peso

The new all-time highs come despite Bitcoin still being down over 50% against its price peak of $69,000 against the U.S. dollar.

The price of Bitcoin (BTC) has notched new all-time highs against some of the world’s most inflationary fiat currencies.

Across 30 hours over Oct. 23 to 24, the cost of buying one Bitcoin has reached all time-highs when using the Argentine peso (ARS), Nigerian naira (NGN), Turkish lira (TRY), Laotian kip (LAK) and the Egyptian pound (EGT).

#Bitcoin just hit an all-time high in Argentina, Turkey and Nigeria. pic.twitter.com/sKRNUaBMX8
— Miles Deutscher (@milesdeutscher) October 26, 2023

However, it should be noted that the result is due to the ongoing devaluation of the currencies, exacerbated by Bitcoin’s recent 16% price increase.

NGN and TRY fell to their lowest points against the U.S. dollar on Oct. 24 and Oct.25, while ARS is only 0.85% off its all-time low (against the U.S. dollar).

According to the International Monetary Fund, the Venezuelan bolivar currently has the highest annual inflation rate at 360%, followed by Zimbabwean dollar (314%), Sudanese pound (256%) and ARS (122%).

The Turkish lira and Nigerian naira came in sixth and 15th with annual inflation rates of 51% and 25% respectively, IMF’s data shows.

*Heat map of countries in the world with corresponding annual inflation rates. Source: IMF*

Crypto observers have long seen digital assets, such as Bitcoin and stablecoins, as a hedge against rocketing inflation, the recent figures could bolster that narrative.

Nigeria, Turkey and Argentina boast the 2nd, 12th and 15th highest rates of cryptocurrency adoption in the world, according to a Sept. 12 report by Chainalysis.

With inflation at 99% in #Argentina, it’s 99% likely that the citizens of that beautiful country would benefit from #Bitcoin.
— Michael Saylor⚡️ (@saylor) February 15, 2023

However, the governments of these countries haven't always seen eye-to-eye with the cryptocurrency industry.

Nigeria is finally becoming more welcoming to cryptocurrencies after its central bank banned local banks from providing services to cryptocurrency exchanges in Feb. 2021.

Progress was made in December 2022 when Nigeria announced its intention to pass a bill recognizing cryptocurrencies as “capital for investment” — citing the need to keep up with “global practices” as one of the main reasons behind its change in stance.

And while Turkey is home to some of the most crypto-curious people, its central bank banned cryptocurrency payments for goods and services in April 2021. It has also working on a central bank digital currency (CBDC) to digitalize the Turkish lira over the last few years.

#Bitcoin fixes this
I'm back in my beautiful country, Turkey, after 6 months. Shocked to witness the same goods costing 3–4 times more already. Rents, food, public transport, and more costs skyrocket regularly. High inflation's devastation is real and alarming. pic.twitter.com/X4N4Axuh1n
— Gülben Gözü (@gulbengozu) August 28, 2023

Meanwhile, Argentina’s inflation crisis could be influenced by the outcome of its presidential election in November, with presidential candidate Javier Milei set to face competitor Sergi Massa in a final run-off vote on Nov. 19.

Massa, who currently serves as the country’s minister of economy, wants Argentina to launch a central bank digital currency (CBDC) “as soon as possible” as a means to “solve” the country’s long-lasting inflation crisis.

Argentina's present provides a glimpse into America's future, where the central bank raised interest rates 15 percentage points to 133% on Oct. 12. But with #inflation running at 138% and budget deficits and debt rising, the rate hikes will have no effect on reducing inflation.
— Peter Schiff (@PeterSchiff) October 26, 2023

He has also voiced an intention to keep the U.S. dollar away from Argentinians, explaining that Argentinians should instead be “patriots” and defend the Argentine Peso.

Milei on the other hand, wants the U.S dollar to be adopted in addition to abolishing Argentina’s central bank.

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US credit crunch means it’s time to buy gold and Bitcoin: Novogratz

March 16, 2023 Coin Telegraph

BTC

The Galaxy Digital CEO predicts tough times ahead for the U.S. economy, but continues to be bullish on crypto.

The United States is headed for a credit crunch and now is the right time to buy gold, silver and Bitcoin (BTC), says Galaxy Digital founder and CEO Michael Novogratz.

“We are going to have a credit crunch in the U.S. and globally,” Novogratz explained in an interview on CNBC. "You want to be long gold and silver [...] and you want to be long Bitcoin,” he said.

Speaking on CNBC’s Squawk Box on March 15, Novogratz noted that banks typically rebuild capital by lending less, meaning that a credit crunch is imminent, noting that indicators like the commodities market are already pointing to a recession.

The U.S. banking industry fell into turmoil this month, with Silvergate Bank, Signature Bank, and Silicon Valley Bank (SVB) all collapsing in the same week. Moody's downgraded the U.S. banking system outlook to "negative."

In the interview, Novogratz suggested a reversal in interest rate policy was on the cards, saying that while the Federal Reserve would “like to do a dovish hike, just for credibility’s sale,” doing so would be a “huge policy error.”

Alongside his prediction of tough times for the U.S. economy, Novogratz expressed a bullish sentiment for crypto, saying:

“If there was ever a time to be in bitcoin and crypto, this is why it was created, in that governments print too much money whenever the pain gets too great, and we’re seeing that.”

The price of Bitcoin dipped after the collapse of Silicon Valley Bank last week but managed to reach new 2023 highs of $26,514.72 on March 14, according to CoinMarketCap.

Looks like Bitcoin is moving on from its risk asset days. As more and more people begin to understand its fundamental value case, the market is slowly turning to Bitcoin as a digital form of gold.
— Handre van Heerden (@Handrev) March 14, 2023

Fiat is in ‘jeopardy’ but Bitcoin, stablecoins aren’t the answer either: Ray Dalio

February 3, 2023 Coin Telegraph

Ark Invest

The hedge fund manager instead wants to see an “inflation-linked coin” be brought to the masses which would serve to ensure consumers secure their buying power.

Billionaire investor Ray Dalio has described fiat currency as being in serious “jeopardy” as an effective store of wealth but doesn’t believe Bitcoin (BTC) and stablecoins will be the solution either.

Dalio, the founder of hedge fund firm Bridgewater Associates explained on CNBC Squawk Box on Feb. 2 that the mass money printing of the United States Dollar and other reserve currencies has him questioning whether they are forms of “effective money.”

“We are in a world in which money as we know it is in jeopardy. We are printing too much, and it's not just the United States, it is all the reserve currencies.”

However, Dalio was quick to add his thoughts on whether Bitcoin was a potential solution, acknowledging that despite what it has accomplished in “12 years,” it is still too volatile to serve as money:

"It's not going to be an effective money. It's not an effective store holder of wealth. It's not an effective medium of exchange," he argued.

He also dismissed stablecoins as an effective form of money as it is a replica of state-backed fiat currency.

Instead, Dalio proposed the creation of an “inflation-linked coin” that would serve to ensure consumers secure their buying power.

“The closest thing to that is an inflation index bond, but if you created a coin that says OK this is buying power that I know I can save in and put my money in over a period of time and transact in anywhere, I think that would be a good coin,” he said.

"#Bitcoin has no relation to anything. It's a tiny thing that gets disproportionate attention," says @RayDalio on #crypto. "The value of $BTC is less than 1/3 of $MSFT stock. It's not an effective store of wealth. But we are in a world where money as we know it is in jeopardy." pic.twitter.com/Cc7o2TwkxG
— Squawk Box (@SquawkCNBC) February 2, 2023

"So I think you're going to see the development of coins that you haven't seen that probably will end up being attractive, viable coins. I don't think Bitcoin is it," he added.

However, not everyone agreed with Dalio’s take on Bitcoin and the viability of an inflation-linked coin.

Digital asset manager Eric Weiss of Bitcoin for Family Officers was one, who told his 38,300 Twitter followers that such a coin could not exist:

"According to Ray, [Bitcoin] is very close to being the solution to the world's problems but its too volatile. He's waiting for and vaguely describes a solution that doesn't and can't exist," said Weiss.

ARK Invest CEO Cathie Wood also had a different view of Bitcoin, referring to it as a defense against wealth confiscation in parts of the developing world:

“I’m struck that the market is now leading the Fed,” @ARKinvest Founder @CathieDWood says on bond market downtrends.https://t.co/DDNw4dbOPD pic.twitter.com/AAS0UWf0kh
— Yahoo Finance (@YahooFinance) February 2, 2023

“Those populations need a fallback, an insurance policy like Bitcoin,” she said.

Dalio’s latest views on Bitcoin come despite recently labeling it “one hell of an invention” that could serve as a viable inflation hedge. However, these remarks were made on Jan. 28, 2021 — before the current bear market took effect.

The billionaire investor has also previously recommended BTC should make up 1-2% of an investors portfolio on Jan. 6, 2022.

As an investment product, the hedge fund manager said in May. 24, 2021 that he would rather buy BTC over bonds but later stated on Aug. 5, 2021, that he still prefers gold.

On Oct. 4, Dalio stepped down as a co-chief investment officer, but remained on board as a mentor.

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