How much does it cost to live in Argentina? The figure that is driving more and more people to invest in BTC

RIO DE JANEIRO, BRAZIL – As of April 2022, the minimum wage in Argentina is ARS38,940 (US$341). According to the Labor Contract Law, this figure is defined as “the lowest remuneration that the worker, without family responsibilities, must receive in cash during his legal working hours to ensure adequate food, housing, education, clothing, health care, transportation and recreation, vacation and welfare.”

But is this amount really sufficient for all that? Let’s look at the basic cost of living for an Argentine. The latest INDEC report states that the basic food basket costs ARS12,108 if it exceeds the means threshold. A figure that increases month by month, given the increasing inflation of products.

Read also: Check out our coverage on Argentina

To this must be added the cost of housing. According to ZonaProp, renting a two-bedroom apartment in Buenos Aires costs an average of ARS53,450. A figure just below that in the north of Buenos Aires, where it is ARS54,498, and well above that in the west and south, where it is ARS37,093. In other cities of the country, such as Rosario and Córdoba, it is ARS30,725 and ARS26,005, respectively.

It should be clarified that this is the average rental data collected for the first quarter of 2022. It should be noted that this value varies by neighborhood and, of course, each month, as last month INDEC recorded a general inflation increase of 55.1% year-on-year and 6.7% in Argentina.

ARGENTINES EARN LESS MONEY THAN THEY NEED TO LIVE ON

The data collected shows that the minimum wage in Argentina is not enough to cover the basic food basket and the average rent of a two-room apartment. To cover these two expenses, a higher income of ARS65,558 is required.

A married couple could afford that on two minimum wages. But even together, they would not have enough for more than that, i.e., not enough to cover household expenses, transportation, clothing, health, education, leisure, and vacations.

You might think, “Well, yes, but most people earn more than the minimum wage.” Unfortunately, this is not the case. According to the latest INDEC report from late 2021, the average monthly income per person in Argentina is ARS32,192. A figure that, according to Mercado Libre, is equivalent to the value of a pair of sneakers or a bicycle.

As if that weren’t enough, everything is getting more and more expensive and many prices are exorbitant, so Argentines have lost their reference values. According to Finanzas Argy, a barbecue for six people costs about ARS12,000, as much as the monthly basic food basket. This high cost is causing this Argentine custom to be lost.

Young people in Argentina are interested in Bitcoin to cope with economic problems.
Since it is difficult to live independently in Argentina, young people usually live with their parents in their own house, where they do not pay rent if they have the opportunity, or as a couple. In this way, some can create the opportunity to save or invest some of the money they earn.

The only way to save in Argentina, as in other Latin American countries, is to change money into a “hard” currency. This is in quotation marks because no asset is completely “hard.” But there are some that hold their value better than the peso, which depreciates drastically over time. Examples include the dollar and Bitcoin, the main cryptocurrency on the market.

There is speculation that people in Argentina have more dollars than in the United States, according to central bank data collected by economist Nicolás Gadano. The reason is that Argentines keep their savings in this currency, although they cannot buy it on the official market.

Argentines also stand out for buying Bitcoin to save or invest. According to data explorer Chainalysis, Argentina is among the 10 countries in the world with the highest adoption of cryptocurrencies, second only to Venezuela in Latin America.

A study by Americas Market Intelligence shows that at least 12% of Argentines have acquired cryptocurrencies before the beginning of 2022. This number is gradually increasing because citizens, especially young people, consider Bitcoin more profitable than the dollar.

Not only because of the price increase it has experienced in the thirteen years since its creation, but also because of its ease of acquisition and storage amid Argentina’s economic difficulties and restrictions. Today, the blue dollar trades at almost ARS200, while one Bitcoin is worth over US$41,000, according to the CryptoNews calculator.

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