Whoever came up with “Thiers’ Law” has never been to Argentina. I can assure you, merchants aren’t taking pesos just because they’re forced to by law. And Gresham’s law has played out in Argentina but most aren’t hodling bitcoin or gold…why? Liquidity and Volatility
Whoever came up with “Thiers’ Law” has never been to Argentina. I can assure you, merchants aren’t taking pesos just because they’re forced to by law. And Gresham’s law has played out in Argentina but most aren’t hodling bitcoin or gold…why? Liquidity and Volatility
@GeorgeGammon I was also surprised btc isn't more common in Argentina. Dollar reigns supreme. My theory is that there's so much trauma around money here, that they value perceived stability over everything else, so the volatility in btc puts them off. They have enough day to day.
What is the source of your information that tells you most aren't hodling #bitcoin or gold? People hodling these items don't spend them...thus if people aren't looking to spend these..why would merchants offer to accept them? The act of "hodling" is in itself one done to take volatility out of the equation and express a higher time preference for savings.
@GeorgeGammon They ARE taking pesos because they’re forced by law. The majority would be using dollars exclusively if they weren’t restricted by law. When the dollar starts to go the way of the peso, it’s then that the move to bitcoin would gain steam (everywhere).
@GeorgeGammon If you go to Venezuela, they still use bolivars too. Why?
@GeorgeGammon Or, perhaps Thier's law just hasn't played out yet in Argentina 🤷♂️. In Nigeria, merchants have begun rejecting the Naira. You're awfully quick to call game over.
@GeorgeGammon Please note: you don't (and can't!) buy houses and cars in pesos--it's only in dollars. So people are already using dollars, just not in day to day smaller transactions. Although I had my cell battery changed out at a shop in BA, and they accepted dollars at DolarBlue rates.
@GeorgeGammon people come up with some complex ideas to avoid the obvious answer
@GeorgeGammon Maybe that's why Argentina is a poor country today when they use to be prosperous.