In the midst of a strong economic crisis, the adoption of Bitcoin is soaring in Turkey, as an alternative to the Turkish lira.
Turkey’s economic situation is not the best. On the contrary, for several years, the Asian country’s economy has faced great difficulties, due to the overheating of the construction sector that has kept it growing until now. This has led to a drop in GDP, increased unemployment and the weakening of its national currency, the Turkish lira. So it’s not surprising that the adoption of Crypto Cash is soaring in Turkey.
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The importance of Bitcoin in economies in crisis
Bitcoin’s role in economies in crisis is not new. The fact is that crypto currencies have started to have a better reception in the last years in developing countries. These countries have increased their adoption of virtual currencies, integrating them into their business models.
This is the case, unlike developed countries that have solid economies and currencies. Developing countries such as Venezuela, Argentina or Nigeria do not have the same level of stability in their societies. This leads people to seek refuge from both the weakness of their national currencies and the government controls that the State can exercise over their money.
For this reason, it has been precisely in these countries where, in recent years, the use of crypto currencies such as Bitcoin has grown significantly. This has increased not only transactions with cryptoactive, but also its use by businesses, and mining activities. This is exactly the phenomenon that we have been able to observe in Turkey in the last few years.
The drop in the value of the Turkish lira has been one of the reasons for the adoption of Bitcoin to soar. Source: TradingViewThe drop in the value of the Turkish lira has been one of the reasons for the adoption of Bitcoin to soar. Source: TradingView TradingView
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Turkey and crypto-currencies
Thus, despite the aggressive foreign policy pursued by his government, with its alleged intention to revive the Ottoman Empire. The truth is that Turkey’s economy is crunching and its citizens know it. Leading them to seek alternatives that will protect them from the weakness of the Turkish lira, as is the case with Bitcoin.
In this way, according to the platform of exchanges peer-to-peer of crypto currencies, Paxful, in the last twelve months they have lived an increase of 274% in the number of registries of users of Turkey. As CEO Ray Youssef mentions: „The rising inflation of the Turkish lira has been a great financial burden for Turkish citizens. Bitcoin can be used to preserve wealth against the instability surrounding the Turkish lira.
A view confirmed by the Chainalysis Geography of Cryptocurrency report. According to which Turkey would be the country in the Middle East with the highest adoption rate of Bitcoin, as well as having the highest number of operations in the BTC Blockchain. A trend that will continue in the future, as the country’s economy continues to suffer.