Investors Turn to BTC After Turkish Lira Plummet
On the 11th of August, the Turkish Lira suffered a massive blow, dropping a large 13 percent on the day and over 45 percent for 2018. Initially a 16 percent drop, the Lira did manage to make a minor climb of just three percent in total, valued at 0.155 TRY against the USD and resulting in a total 13 percent loss.
Fiat or Crypto?
The new drop puts the Lira under more than 45 percent in decline as of this day over one year ago. Supports and fans of Bitcoin then immediately hopped onto Reddit and stating that this was just another step forward for Bitcoin and cryptocurrencies in general as they triumph over national fiat currencies. Additionally, one Redditor commented and stated that possessing BTC is actually safer than possessing Lira as of right now.
New coming investors may debate the Redditor’s comment, stating that it isn’t true due to the fact that Bitcoin has had a terrible year since the beginning of 2018 and has currently dropped a total of 70 percent on the YTD. Analyzing Bitcoin’s value over the last year, the leading cryptocurrency has barely managed to acquire 40 percent of its value. Regardless of a massive correction in the market, BTC continues performing more efficiently than yet another national currency.
Another announcement today was made, stating that the US would be doubling any tariffs of steel and aluminum from Turkey. As a result, many investors quickly exchanged their national currencies from better-performing ones, including the USD and Japanese Yen, with some even exchanging their Lira’s for BTC.
BTC exchanges within Turkey are announcing massive spikes in volume within the last 24 hours. The largest cryptocurrency exchange in the country, Koinim, has announced a 63 percent climb in the volume of BTC while others are reporting volume increases anywhere from 35 percent to 100 percent.
Currently, trusting fiat currencies has become a greyish issue in several countries. Venezuela is experiencing a situation just like Turkey in which cryptos are gaining significantly increased momentum due to the country’s national currency experiencing hyperinflation.
As of now, fiat currencies are their future are not presenting any positive outcomes as a result of global trade ways and several economies undergoing financial crisis and essentially forcing governments to inflate their respective currencies to unprecedented levels.