It was observed last week that while US Dollar is stable, the Turkish Lira has plunged down to nearly 30% versus the US Dollar. Is it the all-out trade war with the United States the cause of the move? The trade war has witnessed tariffs as high as 50% on some items like steel. However, as a counter attack, Turkey has retaliated rising tariffs on consumer goods. Not only this, the Turkish government is also encouraging protests related to shooting iPhones and tearing up fake US Dollars.
Bitcoin will take over official currency Lira
Well if this trend continues, then the chances are quite high that Bitcoin would soon take over in the place of Lira. The Turks may start trading Bitcoin and dump their Lira. Turkey at its best is trying to institute capital controls so that individuals have restrictions in exchanging currency or moving funds outside the country. Off late, Turkey saw a 60% increase in BTC trading volume at one of the largest exchanges in the country. As per the Google trends data also there is a surge in Bitcoin searches from Turkey.
Taking lessons from Venezuela
Usually, it is when the central banks and governments fail to perform that people resort to Bitcoin as an alternative to FIAT. This is what exactly had happened in Venezuela. Turkey may very soon look forward to the significant adoption of Bitcoin if the current situation does not take a u-turn. Venezuela had experienced enormous inflation and unrest among the public. The country was forced to offer petroleum-based cryptocurrency when their currency was in extreme economic crisis.
However, a few months ago, Bitcoin was not a safe thought in Turkey. The current situation for Turkey and Bitcoin at this time exemplifies Bitcoin as relatively stable. Irrespective of the country, Bitcoin is turning out to be a viable alternative to fiat currencies.