Bitcoin, Bolivia, and Barbecue
Bye, bye Bitcoin?
So, China and Jamie Dimon say no to Bitcoin while Argentina is adding 200 Bitcoin ATMs:
https://cointelegraph.com/news/argentina-jumps-on-bitcoin-atm-bandwagon-with-200-expected-in-october
https://www.cnbc.com/2017/09/22/bitcoin-jpmorgans-jamie-dimon-lays-into-bitcoin-again.html
As I write this, and after a 20% dip, the electronic currency is rebounding nicely over the key $4000 (USD) level seen as crucial. Now South Korea and Japan are giving the cryptocurrency a thumbs down as well. In Asia, many seem to be scared of scams or things run amok. It will be interesting to see what Vietnam has planned in a couple months. In other places such as Argentina where cattle are still trusted more than banks as a long term savings mechanism, a new digital currency may seem safer. Some are even saying that it could prove to be White Knightish* for the almost failed state of Venezuela where I worked for a year in the 90’s when most parts were safe. Good luck finding one now in Caracas, or for that matter, milk. They deserve so much better.
I have no claims to cryptocurrency mastery (nor to quantum computing, and fear those who claim expertise!) and subconsciously am still partial to the gold standard. But who do you trust? We are all still scarred from the last financial crisis. Maybe a little digital competition could be a good thing for the financial houses who brought down all of ours? Or maybe Bitcoin is just another tulip. For now, new Bitcoin ATMs are planned in Argentina. Planned.
Bolivia. Where have you been all my life?
Apologies to Bolivia for not visiting sooner and for being manipulated by the western press. Over a decade of growth, many say due to the natural gas, and mineral reserves, has led to some great new infrastructure. Imagine a highway you would expect in Stuttgart, but through the Andes. A socialist president who mostly nationalized the natural gas reserves, noticeably plowed a pile of money into infrastructure. Couple this with small business entrepreneurialism throughout the country and you have year after year of growth. Fossil fuel smugglers to Argentina have been thwarted (others thrive however) due to the fact that foreigners pay a higher international fuel price to even fill up their cars. Huh? Why hasn’t Venezuela thought of this? Oh yeah, the government are the smugglers, and the drug dealers, and the (insert pejorative here). The mix of socialism and capitalism was fascinating to see as a strategy, conscious or not. Hats off to you Bolivia.
Barbeque.
The famous Argentine beef has slipped a notch. Not to worry, it is still good. Rumor has it that the best meat is exported. Remember the no competition thing? The beef industry is sitting pretty to the disadvantage of many an asado (bbq). So now you are forced to buy what is offered domestically. Slowly it seems more competition is coming. Like the rest it will take time. Congressional elections are coming in a couple weeks. If the president’s party does well enough, international investors will feel more at ease. Stay tuned.
*It can maybe help a little, but that is one big hole of a mess