Bitcoin (BTC) is now part of the platform for some US presidential candidates. In Argentina, a top contender for the country’s top government position also believes in Bitcoin’s potential as a foundation for a sound financial system. He even went as far as saying that the government and central banks are scamming people with inflationary tax, and BTC is a natural reaction to such an unfair monetary system.
Javier Gerardo Milei is now the frontrunner to become Argentina’s next president, after winning the primary over the weekend. The 52-year-old pro-Bitcoin politician has a vision of giving back freedom to Argentines and letting them be the architects of their destinies. Aside from having two master’s degrees in economics, he has also worked and taught in the same field.
The Present System is a Scam and Bitcoin is the Way Out
In an interview, Javier was asked about his views about Bitcoin and he started by saying that people need to understand that the central bank is a scam. He further elaborated that the mechanism is designed so politicians can scam the people with inflationary taxes. He believes that the top digital asset is key to fighting against the current system.
“What Bitcoin is representing the return of money to its original creator: the private sector.”
Javier Milei, Aug 2023
Javier also gave a brief history of the current fiat system and how it replaced gold as the primary tool for the exchange of value. He also discusses how Bitcoin’s programming will ensure its scarcity, which is the opposite of the unlimited printing of paper money. However, he also believes that the government will try to block any fiat competitor.
Is Javier Milei Correct?
First, we need to remember that Javier Milei has two master’s degrees in economics. He has also taught the subject and worked as an economist for major organizations. This gives credence to his view about the fiat system and Bitcoin.
He has a very strong opposition to fiat and its role in inflation. But what exactly is inflation? In the simplest of terms, inflation is the erosion of consumers’ purchasing power. For example in 2010, you needed $1.10 to purchase a dozen eggs. However, in January 2023, 12 eggs will cost $4. This shows money is not the best store of value.
On the other hand, Bitcoin started below a cent in its early days. In 2023, you could probably buy a truckload of eggs for just 1 BTC. And the value of Bitcoin is expected to increase in value as time goes by. Even top investors like Cathie Woods expect the king of crypto to reach $1 million in the next decade. BlackRock’s CEO, Larry Fink, has called BTC an ‘international currency” and digitized gold.
Bitcoin Adoption is Getting Traction
If Javier Milei wins, then Argentina will probably follow in El Salvador’s footsteps in making Bitcoin a legal tender. This will signal to the world that the South American country is open to innovative technologies like blockchain, thus paving the way for capital investments from crypto firms. It would also equip their citizens with a tool to fight inflation and an excellent store of value.
The US presidential election is drawing near and several candidates have expressed support for crypto. Robert Kennedy Jr. even promised to make Bitcoin an inviolable right.
Bitcoin was created in 2009 and it was meant to give financial options to its users. It took more than a decade, but it is finally getting traction. Don’t expect that BTC will all of a sudden become the world’s reserve currency. Nevertheless, these small steps will add up, and maybe someday Satoshi’s dream will finally come true.
