Economist Predicts Argentina’s Financial Collapse, Advocates Bitcoin Adoption

He pointed to the rapid devaluation of the peso due to Milei's actions.

The economic programme of Argentina’s President Javier Milei is a classic 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

He claims the country is on the brink of collapse due to an unsustainable model of government bonds and inflation. The authorities have created a system where speculation on these assets has become the only path to financial security, the expert noted. 

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

Milei’s Ponzi Scheme 

The economist criticised the system known as la bicicleta financiera, which Milei launched after coming to power in 2023. This is a high-yield carry trade strategy where investors buy government bonds with interest rates exceeding the pace of peso devaluation.

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

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

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

“The population holding savings in pesos loses everything due to inflation,” the economist said. 

Impending Collapse 

Ammous emphasised that the situation continues to worsen. The peso has fallen by 10% against the US dollar and has already exceeded the corridor set by the authorities. Prior to the September 7, 2025 elections, the Central Bank spent $540 million to support the currency, but failed to curb the devaluation. 

Meanwhile, the yield on government bonds has reached 88%. According to the economist, when this figure exceeds the rate of depreciation, investors will begin to massively switch 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 Milei’s policy turned out to be not a libertarian reform, but a cover for a financial pyramid enriching a narrow circle of speculators. Bitcoin investor Simon Dixon agreed with him. 

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

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

Protect yourself with Bitcoin.

— Simon Dixon (@SimonDixonTwitt) September 8, 2025

“Milei’s shitcoin spoke for itself—just like Donald Trump’s meme coin. These politicians aren’t elected—they’re appointed to extract value for the banks that let them play presidents. Protect yourself with Bitcoin,” he wrote.

Earlier this year, Argentina’s president was embroiled in a corruption scandal involving the meme coin Libra. The politician mentioned the token on social media, triggering its market cap to soar to $4 billion. Soon after, the figure plummeted by more than 90%, leaving investors with multimillion-dollar losses. 

Opposition representatives in the country threatened Milei with impeachment. The Argentine Fintech Association stated that the situation could be an example of a Pump & Dump. Several lawsuits were also filed against the president. 

The US Department of Justice even became involved in investigating the incident. 

Subsequently, Milei stated in a television interview that he did not intend to persuade people to buy the meme coin LIBRA, but merely “shared” information. 

In June, the anti-corruption agency exonerated the politician.