In the uncertain economic climate in Turkey, Bitcoin and cryptocurrencies looking very good.
As shown in the chart below the Turkish lira has lost more than 73% of its value in the last 10 years. Life savings, investments, and pensions suffered and extremely devaluation.
Despite the big selloff in cryptocurrencies markets in 2018 and the massive drop of bitcoin in November nearly 33%, the popularity of cryptocurrencies is growing in Turkey and this is clearly shown by the volume in the chart below.
But what is causing the Turkish Lira devaluation?
Back in August 2018 when Donald Trump tweeted about the tariffs the Turkish lira lost 20% of its value in one day then it recovered but it is still down by 30%.
But the main reason for the constant decline is the government is printing money. People should trust government their live savings while the government is dumping their (fiat shitcoin) on them. On the other side, the government tries to put the blame on someone else and banks try to calm people that is nothing to fear and we are good. In the new financial system, there is no need to trust a human you just have to trust an algorithm.
Stock markets have working hours and days. In the new financial system, nobody tells you when you can access your funds. Bitcoin network cannot be shut down.
Statistics show that 18% of Turkish people hold cryptocurrencies while 9% of Europeans say to own crypto, Americans rate is at 8%. The growing awareness (thanks to Bitcoin) about how the monetary systems works are making Fiat money less trusted.
People are more aware now about the lack of transparency the Fiat money offer. You just have to trust the institution than prints the money, while in cryptocurrency you can verify.
In Fiat money, there is not fixed max supply and even worse, new currency is printed every day without any transparency. This monetary system is destined to fail one day. And bitcoin is helping, offering an alternative end educating people about the concept of currencies.
Venezuela is facing even higher inflation rates. The Venezuelan government launched an Oil backed cryptocurrency called Petro and are trying to force their Petro coin adoption using the power they have, as issuing pensions in Petro instead of Bolivar. On the other side bitcoin and other cryptocurrencies, adoption is growing by high numbers.
With countries with failing monetary systems bitcoin will assume control one day and that will be the day when money separates from the state, which means more democracy and more power in the hand of normal people.
Some analysts expect a hyperinflationary crisis to hit the US dollar in the next 2 years expecting a dollar devaluation by 30%, which might be a big boost for cryptocurrencies. The world might be forced to return to the gold standard which cannot be printed like cash money, You need to spend energy and money to mine gold. Maybe that is what inspired Satoshi Nakamoto when he created bitcoin.
The purpose of bitcoin when it iwas created back in 2009 after the 2008 crisis was exactly to offer a better alternative from traditional currencies.
Do you think cryptocurrencies will replace the government issued money? Feel free to post your opinion in the comments below.