According to GWI Research, Turkey has seen a significant increase in cryptocurrency ownership as inflation rates in the country skyrocket. The survey, which looked at people aged 16 to 64, found that Turkey saw the highest growth in cryptocurrency ownership, with a 27.1% increase from July-September 2021 to July-September 2022. Argentina and the Philippines followed close behind, recording 23.5% and 23.4% increases in crypto ownership rates, respectively.
Read more about the growth of the crypto market in Turkey and find other important financial news with the Born2Invest mobile app.
The high inflation rates in Turkey can be attributed to the increasing adoption of cryptocurrencies
The Turkish lira experienced a sharp drop in late 2021, losing 44% of its value against the US dollar. In early 2022, the inflation rate in Turkey exceeded 30 percent and eventually reached an incredible 72.31 percent by the end of the year. These economic circumstances led to a daily trading volume of cryptocurrencies in Turkey averaging $1.8 billion.
The widespread use of cryptocurrencies in these countries has had a significant impact. Now, over 2.4 million Turks, or about 2.94% of the population, own Bitcoin. The devaluation of the Turkish lira negatively impacted the savings and investments of many Turkish families, creating an environment that favored the adoption of cryptocurrencies. In addition, the Turkish population prefers cryptocurrencies due to their ease of use and their perception as a hedge against inflation.
In the absence of a regulatory framework in Turkey, trading remains the only available option for those interested in cryptocurrencies, which contributes to their growing popularity. However, with the government planning to launch its central bank’s digital currency, the digital lira, in 2023, regulatory adjustments are expected in the coming years. Higher taxes and more precise regulations on cryptocurrency activities are expected to be introduced, although a complete ban on cryptocurrencies seems unlikely.
In Argentina and the Philippines, the loss of confidence in fiat currencies and the demand for alternative stores of value have also fueled the popularity of cryptocurrencies
The increased public interest in digital assets indicates a growing acceptance and recognition of cryptocurrencies as an alternative financial tool in times of economic uncertainty. It is worth noting that major Turkish cryptocurrency exchanges such as BtcTurk and Paribu are seeing significant trading volumes, further highlighting the growing ownership of cryptocurrencies in these countries. In addition, cryptocurrencies are expanding their influence beyond the financial sector, making inroads into industries such as sports sponsorship and university courses.
While the global economy struggles with the aftermath of the pandemic and inflationary pressures, cryptocurrencies are growing in popularity among individuals looking to protect their wealth. Increasing cryptocurrency ownership in Turkey, Argentina, and the Philippines underscores the growing acceptance and recognition of these digital assets as viable alternatives in times of economic turmoil, despite the existence of challenges and concerns.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in COIN KURIER, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Audax, a Low-Risk ESG Company According to Morningstar Sustainalytics ESG Rating
In summary, Audax has demonstrated its leadership in sustainability and ESG performance by earning an "ESG Low-Risk Company" rating from...
VR Bank Bamberg-Forchheim Celebrates Seven Successful Crowdfunding Projects
The VR Bank Bamberg-Forchheim eG not only initiates and maintains the online platform, but also acts as a donor. Because...
Alarming Campaign Absenteeism Jeopardizes Bill Regulating Recreational Cannabis in Colombia
The bill regulating recreational cannabis must pass a total of eight debates, divided into first and second rounds: four and...
CNBV Calls for Unity in the Mexican Fintech Sector to Drive its Development
The fintech sector is made up of 650 identified firms, according to the latest Fintech Radar Mexico 2023 published by...
Jazz Pharmaceuticals’ Leukemia Drug Receives European Commission Approval
Jazz Pharmaceuticals is a biopharmaceutical company dedicated to the development of drugs in neuroscience and oncology. Founded in 2003 in...
Crypto7 days ago
Stanford University Returns Millions from FTX
Business2 weeks ago
The Soft-Landing Narrative Is a Myth: The US Recession Is Not Canceled
Crypto2 days ago
How Will the Price of Ripple and Cardano Develop in the Next Few Days
Impact Investing1 week ago
The European Car Market Could Become Completely Sustainable by 2025, with the Adoption of Smaller EVs