While bitcoin is gradually strengthening its position in the market, the Fiat currency crisis is gradually spreading around the world. This time his victims were Indonesian rupiah and the Argentine peso.
On the background of trade wars US-China currency of Indonesia fell to the lowest level observed in recent times during the Asian financial crisis. Despite the fact that the Bank of Indonesia raised the interest rate 125 basis points, rupee has fallen by 8.7% since the beginning of this year.
Meanwhile, the Central Bank of Argentina raised interest rates by 60% in order to stem the outflow of investors who are concerned about possible default due to large government debts. However, it did not help to stop the development of the financial crisis, which the country’s currency fell by another 15% relative to the U.S. dollar.
As for bitcoin, unlike Fiat currencies, it gradually strengthens its position in the global economy. One of cryptocurrency enthusiasts in his Twitter account said that the first in its capitalization, the cryptocurrency is already comparable to Fiat currencies in countries such as UK, South Korea and Canada:
“Bitcoin is already worth more than all coins and banknotes circulating in the UK. This is great.”
The other interviewee replied that “most likely this is due to the fact that the majority of the population in the UK use the Bank transfer instead of cash”.
Anyway, until the courses are Fiat currencies decline, investors from all over the world turn to bitcoin that has become a refuge for them during the financial crisis. This situation may positively affect the rate of adoption of the first cryptocurrencies.