As Lira Plummeted, Could BTC be Turkey’s Symbol of Light?

As Turkey’s Lira has taken a dive against the US Dollar, the world is wondering whether the country will consider Bitcoin (BTC) acquisition. 

All kinds of motives drive people into investing in the crypto market. A large number of cryptocurrency investors regard Bitcoin (BTC) as an amazing opportunity to remain unaffected by inflation and they zealously invest. In fact, the majority of crypto investors concur that cryptocurrencies as digital assets and Bitcoin (BTC) especially is the best hedge against inflation because fiat currency is devalued when inflation increases, thus it provides a great escape from its effects.

The economy of Turkey has been rattled by a currency crisis as the Turkish Lira incurred a severe dive against the US Dollar. The reason for the record low is borrowing costs being cut by the central bank for the third consecutive month. 

A key rate of 1% was slashed by the central bank, per the Wall Street Journal. This occurrence fueled speculations and rumors on price stability where Lira incurred the biggest low in eight months when it took a 6% dive against the dollar to 11.3118.

The bank’s policy rate was reduced by 100 basis points to 15% at the time of publication, following the tremendous pressure from Turkish President Recep Tayyip Erdogan. Regardless of the fact that inflation is running at 20%, the President is sticking to his convictions. President Erdogan promised to fight interest rates to the end as he also urged firms to invest and hire new employees.

The statement of President Erdogan backfired as the working-class on a national level were outraged. An owner of a market stand stressed that “We don’t deserve this as a nation. People are struggling to buy food as inflation has soared nearly 50%. In comparison, U.S. prices are up about 6%.” Many others have also expressed their displeasure as a result of this situation.

Bitcoin (BTC) is being increasingly considered as a risk against inflation by both institutional and retail investors on a global scale. This new trend is not limited to investors, as countries experiencing currency crises are opting for the same maneuver. Recognizing and sympathizing with the worries of this occurrence, MicroStrategy CEO Michael Saylor tweeted the following:  

Saylor has previously stated his confidence about the reception of Bitcoin (BTC) as the largest cryptocurrency by countries such as Turkey that are dealing with currency crises. Purchasing Bitcoin (BTC), he believes, will definitely offer a decent life to citizens that live in countries in a state of crisis. 

Turkey wouldn’t be the first country that sought refuge in such a crisis as South American countries, including Argentina and Costa Rica, have already weighed this alternative. 

Also read: Hoskinson Calls the Language Used in the US Infrastructure Bill Regulating Cryptocurrencies Problematic, Suggesting an Industry-wide Cooperation