Volume of Turkish cryptocurrency exchanges in Turkey is soaring, while Lira is falling rapidly

Volume of Turkish cryptocurrency exchanges in Turkey is soaring, while Lira is falling rapidly

The word “inflation” is pronounced almost daily in all kinds of media. It has become synonymous with the current times and the troubles that individual countries are facing. Some are coping with it better, some worse. Among the latter is undoubtedly Turkey, which, along with the weakening of the local currency, is becoming a powerful center for cryptocurrency trading.

Huge number of daily transactions

Thanks to ubiquitous analytical tools, we learn that the volume of crypto transactions in Turkey has already exceeded one million per day. This makes this 85-million country the fourth in the world in this respect. 

The reasons for this state of affairs do not have to be sought far. Turkey is struggling with galloping inflation which, compared to other countries in the region, looks striking. According to data for November it amounted to 21.31%. It’s no wonder then that the people of this country are following the ubiquitous narrative and treating assets that are limited in supply as a hedge against the loss of value of their own savings. Thus, Bitcoin has become universally desirable.

What is happening to the Lira?

The Turkish Lira, the country’s official currency, has experienced a real slump since the beginning of the year. Faced with irresponsible government monetary policies and numerous changes at the head of the Turkish Central Bank, it has lost more than 58% of its value since the beginning of 2021 at its peak. 

Occasional green candles are the result of the government’s dramatic actions to prop up the currency’s value. We are seeing a similar one this week, in which the lira, against the U.S. dollar at the same time, has reached its price minimum. While many countries around the world are fighting inflation by raising interest rates, the Turkish authorities, “opposed to usury,” are betting on lowering them. The effects, as we can see, are dramatic. In turn, they are felt by the entire Turkish society. Therefore, it is no wonder that cryptocurrencies are gaining in popularity, where apart from Bitcoin, Ether is doing very well, and even Tether, which with the high and at the same time negative volatility of the traditional currency, maintains the desired stability.

Turkish government does not favor cryptocurrencies

It is worth mentioning here that Turkish authorities are not in favor of cryptocurrencies. Although their possession and trade is fully legal, payments using virtual assets have been banned in the country, this year. Work on new regulations is reportedly underway, but it is not clear whether restrictions will be loosened or even tightened in this matter. Given the difficult economic situation of the country’s residents, it remains to be believed that their resort to virtual currencies will continue to be legal in Turkey.

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

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