Economist predicts collapse of Argentina's financial system, calls for transition to Bitcoin

Argentine President Javier Miley's economic program is a typical Ponzi scheme, according to Saifedean Ammous, author of “The Bitcoin Standard.”

Anatomy of the Milei Ponzi

In my previous piece on Milei[1] 18 days ago, I argued that the Milei administration is running a debt and inflation ponzi that is coming near its end, and that the only concrete achievement of his administration so far is that it destroyed the… pic.twitter.com/BRYK9cNoeo

— Saifedean Ammous (@saifedean) September 8, 2025

According to him, the country is on the brink of collapse due to an unsustainable government bond model and inflation. The authorities have created a system in which speculation in these assets has become the only path to financial security, the expert noted.

“The Miley administration's main achievement is the destruction of the national currency and the creation of a shitcoin casino,” Ammous added.

Miley Ponzi Scheme

The economist criticized the system called la bicicleta financiera, which Miley launched after taking power in 2023. This is a high-yield carry trade strategy in which investors buy government bonds with interest rates exceeding the rate of peso devaluation.

The volume of such operations is estimated at $40 billion-80 billion.

“Anyone with dollar savings could buy bonds yielding, say, 5% per month, while the peso depreciated by 2%, providing a net profit of 3% per month. This is the carry trade, which in Argentina is called la bicicleta financiera—a veritable financial pyramid that has become the country's key 'industry,'” Ammous noted.

The expert explained that the government is accelerating the devaluation of the national currency by printing money to pay high interest rates. However, only insiders who understand how this scheme works benefit. Ordinary citizens “remain in a vulnerable position.”

“People who keep their savings in pesos are losing everything due to inflation,” the economist said.

The Impending Collapse

Ammous emphasized that the situation continues to deteriorate. The peso has fallen 10% against the US dollar and has already exceeded the government-established corridor. In the run-up to the September 7, 2025, elections, the Central Bank spent $540 million to support the currency, but failed to curb the devaluation.

Meanwhile, government bond yields have reached 88%. According to the economist, when this figure exceeds the rate of depreciation, investors will begin to flock to the US dollar and Bitcoin. This will lead to the final collapse of the peso and force Argentina to seek assistance from the IMF .

The expert stated that Miley's policy turned out not to be a libertarian reform, but rather a cover for a Ponzi scheme that enriches a small circle of speculators. Bitcoin investor Simon Dixon agreed.

🇦🇷 A textbook proof-of-weapons network endgame.@JMilei's shitcoin told you everything—just like @realDonaldTrump.

These politicians aren't elected, they're chosen—to extract value for the banks that let them play president.

Protect yourself with Bitcoin.

— Simon Dixon (@SimonDixonTwitt) September 8, 2025

“Mileya's shitcoin has spoken for itself—just like Donald Trump's memecoin. These politicians aren't elected—they're appointed to benefit the banks that allow them to play president. Protect yourself with Bitcoin,” he wrote.

At the beginning of the year, the President of Argentina found himself at the center of a corruption scandal involving the Libra meme coin. The politician mentioned the token on social media, causing its market cap to rise to $4 billion. The figure soon plummeted by more than 90%, leaving investors with multi-million dollar losses.

Opposition figures in the country have threatened Milei with impeachment. The Argentine Fintech Association stated that the situation could be a case of pump and dump. Several lawsuits have also been filed against the president.

The US Department of Justice even got involved in the investigation of the incident.

Miley later stated in a television interview that he had not intended to convince people to buy the LIBRA meme coin, but was simply “sharing” the information.

Let us recall that in June, the anti-corruption agency acquitted the politician.

Source: cryptonews.net