Bitcoin Advocate Javier Milei Faces Setback Ahead of Argentine Presidential Election

As Argentina's presidential election draws near, the pro-Bitcoin candidate Javier Milei is falling behind. He failed to secure victory in the initial round of the presidential election and is now set to compete against Economy Minister Sergio Massa in the runoff scheduled for November 19th.

Bitcoin Advocate Javier Milei Faces Setback Ahead Of Argentine Presidential Election_65d5cb7bce5f2.webp

Bitcoin Advocate Javier Milei Falls Behind as Argentina’s Presidential Election Heads to Runoff

Pro-Bitcoin candidate Javier Milei is trailing as Argentina’s presidential election approaches. He did not secure a win in the first round of the Argentine presidential election and will now face off against Economy Minister Sergio Massa in the runoff on November 19.

As of October 23, with more than 90% of the votes counted, Bloomberg reported that Massa is leading with over 36% of the support, while Milei is behind with over 30% of the votes.

Presidential candidates in Argentina need 45% of the vote or 40% with a 10% lead to win the presidency outright. This outcome may come as a surprise, as Milei initially led the preliminary presidential election with around 30% of the votes back in August.

Milei, who describes himself as an anarchist capitalist, aimed to reduce the size of the government and abolish the Central Bank of Argentina, which he considers a scam. He also planned to convert Argentina’s peso to the U.S. dollar, in line with El Salvador’s Bitcoin-friendly approach.

1698031025

Milei’s Liberty Advances (La Libertad Avanza) coalition is seen as a mix of libertarianism and extreme individualism.

He has also criticized Bitcoin as a response to “central bank scammers” and argued that fiat currency allows Argentine politicians to deceive the people through inflation.

On the other hand, Massa has pledged to launch a central bank digital currency (CBDC) to “address” Argentina’s prolonged inflation crisis and has opposed the idea of using the U.S. dollar.

The election comes against the backdrop of 40% of Argentina’s population facing poverty and exhaustion due to the country’s escalating debt crisis. Annual inflation is also approaching 140%.

Argentina will hold the runoff election on November 19, and the candidate with the most votes will become the president for a 4-year term.

Related: Bitcoin Could Surge 11-Fold with Blackrock’s ETF Approval”

Bitcoin Dreams Are Coming True in Argentina and Turkey

It’s no surprise that a Bitcoin-supporting candidate recently emerged victorious in a primary election in Argentina.

Just before the digital asset market experienced heightened volatility and Bitcoin’s descent due to rising interest rates and limited market liquidity, Javier Milei gained international attention by unexpectedly winning the Argentinean primary election.

Javier Milei, a libertarian candidate affiliated with the “La Libertad Avanza” party, is an outspoken advocate for Bitcoin. He believes that Bitcoin symbolizes the return of money to its original creators, the private sector.

1698031112

Milei also advocates for the dismantling of Argentina’s central bank, which he views as a deceptive institution used by politicians to impose inflationary taxes on the general public.

While it’s not surprising for a candidate in a country plagued by high inflation (currently estimated at over 100% annually) to criticize the central bank, it raises broader questions about the global cryptocurrency experience.

When we hear statements like “Bitcoin is too risky,” we must remember that, as U.S. citizens and dollar holders, we are speaking from a position of significant privilege, often referred to as “exorbitant privilege.”

Coined by French Finance Minister Valéry Giscard d’Estaing in the 1960s, exorbitant privilege refers to the unique advantages enjoyed by the United States due to the widespread use of the dollar in international trade, finance, and as a global reserve currency.

1698031668

These advantages include the U.S. government’s ability to print dollars with minimal consequences and to borrow at lower interest rates compared to many other nations, some of which have a history of financial instability, such as Argentina.

The global reserve status of the dollar also simplifies monetary policy decisions for the U.S., as the Federal Reserve effectively serves as the world’s central bank, setting the tone for other central banks to follow similar rate policies to defend their exchange rates.

As John Connally, President Richard Nixon’s Treasury Secretary, famously told a group of European finance ministers: “The dollar is our currency, but it’s your problem.”

So, what has the Bitcoin investment experience been like for holders outside of the local dollar system?

Over the past five years, most Bitcoin holders in countries with currencies other than the U.S. dollar have seen substantial gains in Bitcoin value, largely due to the depreciation of their local currencies relative to the dollar, driven by rising U.S. interest rates.

Additionally, Bitcoin itself has delivered a 31% return relative to the U.S. dollar over this period (as indicated by the orange bar in the Bitcoin vs. USD return comparison).

This five-year performance underscores the strength of Bitcoin relative to a robust U.S. dollar. Notable exceptions during this period include Argentina (which provides context for Milei’s primary election success) and Turkey.

These countries have grappled with significant inflation rates of 60% and 33%, respectively. Bitcoin holders in Argentina and Turkey have been able to safeguard their purchasing power and withstand challenging political and economic conditions within their countries by leveraging a decentralized and digital store of value.

(100 votes)

5.0/5

(100 votes)

Latest

Transforming $86,000 Into $1 Million Through Daily Bitcoin Dca

Editor Choice | Bitcoin

Transforming $86,000 into $1 Million through Daily Bitcoin DCA

An account X is sharing a video about the daily DCA (Dollar-Cost Averaging) journey of Bitcoin from $86,000 to $1 million after nearly 2 years.

Bitcoin Continues To Rise As Market Enters A Crucial Phase

News | Bitcoin | Editor Choice

Bitcoin Continues to Rise as Market Enters a Crucial Phase

The cryptocurrency market is at a decisive moment as Bitcoin hovers around the $110,000 mark, signaling a potential breakout amid an intense standoff between bulls and bears.

Bitcoin Could Drop To $100,000 Soon

Bitcoin | Editor Choice

Bitcoin Could Drop to $100,000 Soon

Although Bitcoin has surged following the stabilization of the Middle East situation, it could still fall below the 100,000 USD mark in the near future.

Strong Price Pattern Emerges, Is Bitcoin Poised For A New Ath

News | Bitcoin | Editor Choice

Strong Price Pattern Emerges, Is Bitcoin Poised for a New ATH?

A powerful bullish candlestick pattern has just appeared on Bitcoin’s chart, raising expectations for a new all-time high as the market leans toward an upward trend.

Tether Aims To Become The World's Largest Bitcoin Mining Company

Policy & Regulations | Bitcoin

Tether Aims to Become the World’s Largest Bitcoin Mining Company

CEO Paolo Ardoino aims to make Tether the world's leading Bitcoin mining company, even as it currently leads in the stablecoin sector.