The parity between the peso and the satoshi is temporary, but it can be significant in the economy.
Argentine Bitcoiners celebrate that the satoshi is surpassing the ARS
“Argentina has to be a country that integrates into the world, not isolates itself from the world.”
Carlos Saul Menem
Once again, we Argentines and those who enjoy Argentina have been favored by the basilisk.
At the time of writing this article, the Argentine currency is equivalent in unit value to the same as the global and universal currency. With the current prices of bitcoin, USD and ARS, one Argentine peso is currently worth one satoshi. Each Bitcoin is worth ARS 100,000,000.
This parity greatly facilitates all economic calculations. It’s like suddenly the retail economy would have been bitcoinized. Logically, this did not happen since merchants continue to demand the previous step of converting SATS to ARS, but for practical purposes of daily use and economic calculation it is the same as if the entire country had magically entered, from one moment to the next, to your own Bitcoin pattern.
This context evokes the nineties. A key decade in the development of the country where a regime of convertibility of the peso against the dollar governed.
In that decade, President Menem organized the economy in such a way that not only did the hyperinflationary context cease, but also kept the value of the peso tied to the dollar in real form for the entire remainder of his term, ten years in total. This economic intervention is known as “one to one.”
That was the only time that someone of my generation knew what it was like to live in a context without inflation. Technically with some inflation, which the USD had during that decade. Which compared to the mess they were doing with the ARS was basically imperceptible.
Except in this decade, all Argentines who have lived in the last Argentine democratic period, that is, since 1983, have continually suffered at all times from a high or very high inflationary regime. For this reason, I thank Carlos Menem, who taught me with his government as an empirical demonstration that monetary inflation is not necessary to govern.
It is a shame that this learning has not hit the local culture harder. Despite having enjoyed that decade of economic stability and productive prosperity, Argentines never demanded an end to inflation from their subsequent rulers. But, quite the opposite: they rewarded with their votes those who devalued them the most.
Menem’s one on one was immoral because it was a forced conversion. That is, a price regulated and controlled at gunpoint, threats and extortion. On the other hand, the one by one current, that of satoshi against peso, It is a free price entirely created by the market. As such, it will probably last very little, perhaps less than it takes to write and read this article, but that doesn’t matter anyway.
“There is nothing that is stable and lasting except the nature of the entire universe, which is eternal and unchangeable. Everything else is fleeting and transitory, like the waves of the sea that rise and disappear without a trace. So we must learn to live in harmony with nature and accept with serenity what destiny brings us, without clinging to anything that is ephemeral and transitory.»
Marcus Aurelius, Meditations 2, 17.
The important thing is that we are in the timeline in which Bitcoin exists and continues to exist, in which Argentina is receiving more and more bitcoiners, in which we are governed by a marketing figure who has managed to attract the attention of the world and in an economy at the moment nominally satoshized. We have the size of a small continent, all the possible biomes, the best meat and wine in the world, the most beautiful women and an incredible community of bitcoiners. What more could we ask for?
Could we perhaps wish for permanent one-to-one stability? With an ARS magically tied to the SAT? No, Better to continue enjoying the roller coaster of the bitcoin price, in order to continue going through hyperbitcoinization in real time and with metrics that continue to demonstrate how Bitcoin continues to act as a financial black hole absorbing and thus, at the same time, representing the totality of human value.
Camilo JdL for CriptoNoticias at 870,300 Timechain
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.
