Trading volumes on Turkish cryptocurrency exchanges increased in 37% since October 2018. This tells that Bitcoin’s popularity hasn`t suffered from recent decrease of annual inflation in the country.
Financial Times announced inflation in Turkey on November 2018 fell after the moment it reached its peak in more than 25% during previous months.
Investment platform has learned Goldman Sachs analytics foretell that annual rate of consumer prices inflation will reach its maximum at the point 27% in the first quarter of 2019, and to the year’s end it is going to decrease to 15%.
Vedat Akgiray, the professor of Department of Finance at the Bosphorus University in Istanbul, has claimed that trust in financial institutions in Turkey stays at a record low and this fact motivates country’s citizens to look for an alternative – decentralized currency. Financial crisis, which was occupying Turkey for the whole summer, led to significant devaluation of savings, pensions and investments. As national currency reached historical minimum – about 7,2 Lira for a Dollar.
However, financial instability and uncertainty didn’t scare young and technically savvy population of the country, that led to the unprecedented growth of cryptocurrencies popularity, especially Bitcoin. According to Slate, the investigation of ING/Ipsos, which was conducted in the period since 26 March 2018 till 6 April 2018, showed that 18% of asked Turkish citizens own cryptocurrency, while just 9% of Europeans have any savings in digital actives.
Bitcoin Could Replace Dying Fiat Currencies
The poll, conducted by Turkish investigating company Twentify in August 2018, just after the rise of Lira rate, showed that 20% of respondents bought and sold BTC. And this made the growth of Bitcoin popularity even more notable, despite the fact that cryptocurrency`s price fell at 10% in the same month.
This phenomenon was noted by some famous persons of cryptocurrency industry. August 13, 2018 anonymous co-owner of Bitcoin.org wrote on Twitter about significant amount increase of site`s visitors from Turkey, he claimed the Bitcoin would capture the whole world and would replace dying fiat currencies.
The head of the investigating group IC3 of Cornell University Emin Gün Sirer has said to Slate that digital currencies are very attractive for young people in Turkey. Relatively young population of the country in comparison with European people, flexible introduction of new technologies and cultural propensity for financial schemes with high profits make this territory fertile ground for Bitcoin.
Turkey is not a single world direction, where BTC popularity is growing. Recently it has been informed, that P2P-markets of Latin America continue demonstrating record volumes of cryptocurrency trading. Citizens of these countries are trying to escape from economic crisis and depreciation of fiat currencies with the help of Bitcoin.