The Number of Crypto Owners in Turkey Increased by 27%
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.
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.
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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.
(Featured image by smuldur via Pixabay)
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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.
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