Turks Traded $1.8 BIn Crypto Amid Lira Crash During Q4 2021.

Turks Traded $1.8 BIn Crypto Amid Lira Crash During Q4 2021.

2022-01-17 | Selina Mathew

Turks Traded $1.8 BIn Crypto Amid Lira Crash During Q4 2021.

To mitigate dangers in the face of Turkey's soaring inflation rate, Turkish individuals are investing in bitcoin as well as tether. Crypto trade volumes in Turkish lira hit an average of $1.8 billion in the fourth quarter of 2021, a significant rise from prior quarters.

Turkey's inflation rate increased by 36% in December 2021, reaching a 19-year high. The cost of common necessities such as food and essentials, and also transportation, has all increased. Turkey has not hiked interest rates, as several other nations have done to keep up with inflation, but this has led in the Lira losing 44 percent of its value against the US dollar by 2021.

Prime Minister Tayyip Erdoan has referred to interest charges as "the mom and dad of all wickedness," and has stated that Turkey is experiencing an economic transition. Nevertheless, the efforts implemented thus long have only harmed domestic earnings.

As a consequence, Turks have shifted their focus to bitcoin as well as the stablecoin USDT. The past, in particular, has been promoted as a hedge towards inflation. It is one of the key causes of acceptance, and residents in several other nations with high inflation rates have also purchased the asset.

Turkey is hardly the sole nation that has seen massive inflation in latest days. As per the nation's Labor Department, inflation in the United States is on the rise, with the nation having the highest 12-month increase rate in 40 years.

Such occurrences are essentially pushing the choice of ordinary citizens, who are all currently struggling from the pandemic's impacts. In such a trying time, numerous people see bitcoin as well as other digital assets as a route out.

Can cryptocurrency assist as inflation rates go up?

Concerns of inflation have been a prominent topic of discussion since countries started implementing policies to combat the economic repercussions of the COVID-19 epidemic. This was one of the reasons bitcoin prices soared above $69,000 in November 2021. Higher inflation is predicted to continue, and several experts believe that cryptocurrency provides a solution.

Amongst them is Peter Thiel, who claims that crypto prices demonstrate that inflation is a cause for concern. In an appearance with CNBC, Stifel's chief economist Lindsay Piegz reportedly stated that the Federal Reserve had abandoned command over inflation.

As the Omicron variety rapidly spreading over the globe, inflation worries have been heightened yet worse. With the year simply getting started, it continues to be observed what steps governments will take. Simultaneously, investors might become much more interested in bitcoin, the digital gold.

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