The economy around the globe has fallen prey to the inflation which has been a marauder for the thrift class. Pandemic, growing variants of the virus, and the burdening lockdowns have paved the way for the economy to fall apart. Decisive amendments made by governments across nations have done little for the ailments.
Turkey remains one of the severely affected nations by inflation, which has been tormenting the citizens of the nation. Meanwhile, crypto proponents have been reckoning the hypothesis of cryptocurrencies countering inflation. The coin market has managed to rise above the turbulence resulting from the global crisis.
Will Cryptocurrencies Take Turkey’s Inflation Brunt?
Turkey has been in economic turmoil, in the midst of soaring high inflation rates. Which is currently at about 21.3%. In comparison, the inflation rate of the U.S is at 6.8% which is a 39-year high. While the global average is at 3.5%, the numbers justify the severity of the situation.
The local currency Lira is in a free fall, as the country’s economic approach has been in contrast to the ointment for the inflation brunt. The government of Turkey plans to yield the economy from exports, which citizens believe to be a fiasco. Which is very different from the FED’s move. Bitcoin and cryptocurrencies can be an ideal hedge to inflation crises around the globe.
The legalization of Bitcoin as a legal tender in El-Salvador, has helped the nation zip past the brunt of inflation. The adoption of Bitcoin has benefitted El-Salvadorians in monetary terms by a greater margin. A similar move by the Turkish government can bring relief to the deplorable livelihood.
Turkey’s Central Bank had earlier banned the use of cryptocurrencies and assets for purchase from April 30. Citing “irreparable damage” and transaction risks, despite the positive feedback from the citizens. Prior to the ban, the nation had several small and medium businesses accepting cryptocurrencies. The payments accounted for 5 to 10% of transactions in cryptocurrencies.
Collectively, the coin market has fared exceptionally well against the global inflation, pandemic, and crackdowns from countries. The market has grown folds since the past year despite the turbulence from over $600 billion to brushing $3 trillion mileposts. The star crypto Bitcoin is up 108.4% since the previous year, while Ethereum is up 530.4%. With the burdening inflation, we can expect Turkey to revoke its ban, and implement positive amendments.