Amid a strong economic crisis, the adoption of Bitcoin explodes in Turkey, as an alternative to the Turkish lira.
The economic situation in Turkey is certainly not the best. For several years, the economy of the Asian country has faced great difficulties. The construction sector that kept it growing until now overheated. This situation has led to a drop in GDP, increased unemployment, and the weakening of its national fiat currency, the Turkish lira. For these reasons, it is no wonder that the adoption of Bitcoin is soaring in Turkey.
Importance of Bitcoin in Crisis-Ridden Economies
Everyone knows the important role that Bitcoin has played in crisis-ridden economies. The fact is that cryptocurrencies have begun to have a better acceptance in recent years in developing countries. They have increased their adoption of virtual currencies, integrating them into their business models.
This is happening because, unlike developed countries, they do not have strong economies and fiat currencies. Venezuela, Argentina, or Nigeria, among other developing countries, do not have the same level of stability in their societies. Their population seeks ways to take refuge both from the weakness of their national fiat currencies and from the government controls that the State may exercise over their money.
In recent years, it has been precisely in these countries where the use of cryptocurrencies such as Bitcoin has grown significantly. Not only have transactions with the crypto asset increased but also its use by businesses and mining activities. In the last few years, it has been possible to observe the latter phenomenon in Turkey.
Turkey and Cryptocurrencies
The Turkish government has allegedly followed an aggressive foreign policy, aiming to revive the Ottoman Empire. The truth is that the economy of Turkey is collapsing, of which its citizens are aware. This situation has led them to look for alternatives that protect them from the weakness of the Turkish lira. Of course, these alternatives include the main cryptocurrency in the market.
As a consequence, in the last twelve months, peer-to-peer cryptocurrency exchange platform Paxful has experienced an increase of 274% in the number of user registrations in Turkey. According to its CEO Ray Youssef, “the rising inflation of the Turkish lira has been a great financial burden for Turkish citizens. They can use Bitcoin to preserve wealth against the instability surrounding the Turkish lira.”
The Chainalysis Geography of Cryptocurrency report confirmed Youssef’s view. According to this document, Turkey would be the Middle Eastern country with the highest rate of adoption of Bitcoin. It also has the largest number of users operating on the BTC Blockchain. This trend will continue in the future, as long as the economy of the country continues to suffer.
Once again, it is possible to see that countries with crisis-ridden economies resort to decentralized cryptocurrencies like Bitcoin. Since its creation, this crypto asset, in particular, has proven to be able to overcome its worst all-time lows. Therefore, it stills the best option for those who want to venture into the world of cryptocurrencies.
By Alexander Salazar
