Turkey’s economic situation is not the best. On the contrary, for several years, the Asian country’s economy has faced great difficulties, due to the overheating of the construction sector that kept it growing until now. Which has led to a drop in GDP, increased unemployment and the weakening of its national currency, the Turkish lira. As such, it is not surprising that Bitcoin adoption is skyrocketing in Turkey.
The importance of Bitcoin in economies in crisis
The role of Bitcoin in crisis economies is not new. And the thing is, cryptocurrencies have begun to have a better reception in recent years in developing countries. Which have increased their adoption of virtual currencies, integrating them into their business models.
This is so, unlike developed countries that have strong economies and currencies. Developing countries such as Venezuela, Argentina or Nigeria do not have the same level of stability in their societies. This leads the population to seek ways to take refuge both from the weakness of their national currencies, and from the government controls that the State can exercise over their money.
For this reason, it has been precisely in these countries that, in recent years, the use of cryptocurrencies such as Bitcoin has grown significantly. Increasing not only transactions with the cryptoactive, but also its use by businesses, and mining activities. Precisely the phenomenon that we have been able to observe in Turkey in recent years.
Turkey and cryptocurrencies
Thus, despite the aggressive foreign policy followed by his government, with its intended intention to revive the Ottoman Empire. The truth is that Turkey’s economy is crunching and its citizens know it. Leading them to look for alternatives that protect them from the weakness of the Turkish lira, as is the case with Bitcoin.
Thus, according to the peer-to-peer cryptocurrency exchange platform, Paxful, in the last twelve months they have experienced an increase of 274% in the number of user registrations in Turkey. Well, as mentioned by its CEO, Ray Youssef: “The rising inflation of the Turkish lira has been a great financial burden for Turkish citizens. Bitcoin can be used to preserve wealth against the instability surrounding the Turkish lira ».
A view confirmed by the Chainalysis Geography of Cryptocurrency report. According to which Turkey would be the Middle Eastern country with the highest rate of adoption of Bitcoin, in addition to having the highest number of operations on the BTC Blockchain. A trend that will continue in the future, as the country’s economy continues to suffer.