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Bitcoin has been known as a protection against global disasters, with the COVID-19 pandemic serving as a prime example. As the global economy recovers from the pandemic’s tremendous impact, Turkey’s citizens are desperately seeking alternatives to its fiat currency, the Turkish Lira.
According to reports, the valuation of Bitcoin rose in Turkey markets as the value of the Lira dropped by 17% in a single day. This decline in the value of the fiat was the most severe in nearly 20 years. As the value of the Lira plummeted, users turned to the popular search engine ‘Google’ to find Bitcoin. According to Google Trends, the search for Bitcoin in the country has risen by 566 percent.
The failure of the fiat followed President Erdogan’s decision to oust Naci Agbal, the head of the country’s central bank.
The nation raised its interest rates last week, but the fiat currency reversed its path in the market and lost all of its gains in the first quarter. The Lira’s value dropped by 14% in a single day after the President’s announcement.
The currency crisis has prompted the adoption of Bitcoin in the region, as has the adoption of Bitcoin in other economically poor countries such as Venezuela, which also has a depreciating fiat currency.
This decline in the value of fiat pushed more people to Bitcoin. This drive was evident in the peer-to-peer industry, where the amount of Bitcoin in the country reached $100,000. According to results, the digital asset’s minimum ask price was 509,840 Turkish Lira [$64,000]. In comparison, several offline exchanges had put the price of a single Bitcoin at $100,000 in Lira.
The current valuation of Bitcoin in global markets is close to $58k; however, the price quoted by Turkish exchanges was nearly twice that amount. As the country struggles with yet another huge hit to its economy, the renewed interest in cryptocurrency among people and the government could aid in mitigating the repercussions.
The Turkish government has been working on crypto legislation and recently stated that it was working with its central bank on digital assets in the region. Now that more citizens are gravitating towards Bitcoin, as shown by the recent protest, the government will need to step up attempts to develop these guidelines.