Crypto saved the day? Turkey’s trade volume skyrockets

Crypto might be the only way out for people in Turkey looking to escape their currency degradation. As Turkey’s national economy collapses, the pound has experienced a massive collapse against the US dollar with more than 10% on its worst day and an annual loss of 55%.

Related reading | Turkey’s President Announces War on Cryptocurrencies

The lecture was able to trace some of the downsides after Turkish head of state Tayyip Erdogan announced a “new business model”. Erdogan insisted on keeping interest rates low and took steps to improve the situation, mainly replacing members of his cabinet and the central bank.

However, as the graph below shows, the lire has been trending downwards since 2014 when Erdogan first took office. As happened in 2021 and since their inception, cryptocurrencies appear to be the most effective alternative for citizens to protect themselves against bad monetary policies.

The Turkish Lira on a downtrend on the monthly chart. Source: TRYUSD Tradingview

Crypto trading volume has jumped over a million against the Turkish lira as citizens search for a place to “park their savings to avoid the effects of soaring inflation,” according to a Reuters report. . As the graph below shows, 2021 was by far the most active year for crypto users in Turkey.

Bitcoin Crypto Lira Turkey
Source: Reuters

At the start of the year, the number of crypto transactions against the Turkish lira skyrocketed, possibly due to two factors: rising inflation and the rally in major cryptocurrencies. According to Reuters, it is common for Turks to switch from their national currency to valuable assets:

Converting lire to US dollars or gold is common for Turks, who have seen the currency lose 90% of its value since 2008. But with Ankara seeking to make such practices more difficult and cryptocurrency prices rising sharply this year, crypto trading has grown in popularity. .

The most popular crypto assets in Turkey

Other data cited by the report concludes that Bitcoin and Tether (USDT), a digital asset linked to the price of the US dollar, are the most popular digital assets in Turkey. The latter offers traders a bridge between the lira and other cryptocurrencies.

While Bitcoin has increased its adoption around the world, especially in countries in economic crisis, as a store of value / medium of exchange. The first market-capitalization crypto was created to be censorship resistance with a limited supply that no central bank or single entity can alter.

Thus, it offers people a solid alternative against their constantly changing and depreciating local fiat currencies. Of course, Turkey’s central bank and other government authorities are pushing for more crypto regulations claiming “too much risk” for users.

Related reading | Turkish Lira Crash: Bitcoin Freedom Vs. Fiat Currency Monopoly

In the meantime, Bitcoin could continue to prove itself as the only asset that will prevent adopters in Turkey from having their wealth destroyed by Erdogan’s policies. At the time of going to press, the price of BTC is trading at $ 48,956 with a sideways move in the last day.

Bitcoin BTC BTCUSD crypto
BTC moving sideways in the 4 hour chart. Source: BTCUSD Tradingview

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