Turkey looks to Bitcoin as Lira Collapse Continues

Bitcoin Turkey

The Turkish Lira has plummeted nearly 30% in the past week versus the US Dollar. Much of the move was the result of an all-out trade war with the United States which saw tariffs as high as 50% on some items like steel. Turkey has retaliated increasing tariffs on consumer goods, and the Turkish government has been encouraging protests which included shooting iPhones and tearing up fake US Dollars.

Turkey may look to institute capital controls which would limit individuals from exchanging currency or moving funds outside of the country. In anticipation of this possibility would see many Turks dumping their Lira for Bitcoin. One of the largest exchanges in Turkey saw a 60% increase in BTC trading volume. Google trends data also includes a surge in Bitcoin searches from Turkey.

If the situation continues, we could see another Venezuela with enormous inflation and unrest among the public. Due to the extensive devaluation of their currency, Venezuela was forced to offer petroleum-based cryptocurrency.  The situation for Turkey and Bitcoin illustrates the relative stability of Bitcoin at this time. Bitcoin would not have been thought of as a safe haven asset just a few short months ago.

Bitcoin is demonstrating its purpose as an alternative to FIAT when central banks and governments fail. It may take more situations like Venezuela and Turkey until we see significant adoption, but both cases prove BTC as a viable alternative.