Turkish Lira is seeing huge waves of inflation. As a result, the people of Turkey have been turning to cryptocurrency. Investments in Bitcoin, Ethereum & XRP have increased dramatically.
Turkey’s Economic Crisis
Turkey’s national currency has dropped 50% against the dollar in the last 12 months, and recorded an annual inflation rate of 15.9% in July – nearly 5 times the average rate for wealthy counties.
The country is also facing some foreign trade issues as US president, Donald Trump, announced he’ll be doubling import tariffs on Turkish aluminium and steel.
I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!
— Donald J. Trump (@realDonaldTrump) August 10, 2018
These factors and many others have contributed to the country seeing a huge decline in the value of the Lira. Now the people of Turkey are turning to cryptocurrencies, hoping they can safeguard the value of their cash from falling even lower in value.
Cryptocurrency To The Rescue
Between 1st-12th August, volume on local crypto exchange ‘BtcTurk’ increased by over 350%.
Despite Bitcoin falling over 50% this year so far, over 38% of the trading volume on BtcTurk is coming from BTC trades ($3.5M+ In 24hrs). Other cryptocurrencies being traded include Ethereum ($2.1M+ In 24hrs) & XRP ($1.8M+ In 24hrs).
The price of 1 Bitcoin vs. the Lira has increased over 30% in the last month alone.
Earlier this year, Turkish president Tayyip Erdogan was urging people to convert their stash of USD & EURO back into TRY to help slow the decreasing exchange rate. – “My brothers who have dollars or euros under their pillows: Go and convert your money into lira. We will thwart this game together”.
These may be very turbulent times for the Turkish economy, however, cryptocurrencies are currently proving to be the best alternative to the Turkish Lira.
Could you see Turkey adopting Bitcoin or other cryptocurrencies as their primary value of exchange? Please leave your comments below, we would love to know what you have to think.