A recent note from Ark Invest suggests that Argentina is ahead of El Salvador in terms of Bitcoin (BTC) adoption.
The note, penned by research fellow David Puell, compares the two Latin American countries and their different approaches to BTC.
El Salvador made history as the first country to give Bitcoin official currency status in 2021. However, according to Puell, the actual use of BTC in the country is not very high. Puell cited the observations of Signum Growth Capital CEO Angela Dalton, who visited El Salvador and shared her views on a podcast with Ark. Dalton said that most Salvadorans still prefer the US dollar, which has been the official currency since 2001, and are wary of Bitcoin's volatility.
On the other hand, Argentina is facing a serious economic crisis with inflation rates expected to reach 147% by 2023. This has led many Argentines to seek alternatives like Bitcoin to protect their wealth.
Puell also points out that Argentina is a pro-BTC libertarian presidential candidate named Javier Milei, who won the summer primaries on August 13, causing a spike in the BTC price in the country.
Puell argues that if Milei wins the general election in October, both Bitcoin and the purchasing power of the Argentine people will benefit greatly.
*Not investment advice.