Cryptocurrency & Blockchain Business

Turkey: Financial crisis lets to a high demand for bitcoin as Lira plummets

In the light of the extreme changes in the value of the Turkish lira (TRY), the notoriously erratic bitcoin seemed tame by comparison, reports said.

At the time of an escalating currency crisis in Turkey, the ten-day swings in the national currency against the US dollar, an unprecedented phenomenon since the period after April 2017 constitutional referendum, just exceeded those for the bitcoin, Bloomberg News said.

There are signs that Turkish people are losing already trust in lira, pursuing alternative options of exchange.

The Turkish President Recep Tayyip Erdogan who repeatedly called on citizens to convert their foreign-exchange deposits to support the domestic currency, started to lose his credibility, as those who obeyed those appeals in the past lost money.

The bitcoin’s volatility prevented its adoption in mainstream markets as a method of payment, rendering it as a reliable store of value.

The cryptocurrency’s amount used in purchasing goods and services have extended decline. However, the bitcoin has been recently steadier than the Turkish lira, though it has still suffered a rockier patch this year.

Year to date, the digital currency lost 55% of its value, while the Turkish lira lost 45%.

 By 12:35 pm GMT, the USD/TRY pair climbed 7.14% to TRY 6.8916.

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