People think it’s just cryptocurrencies like Bitcoin, Ethereum, Litecoin etc. are volatile and unstable, but Lira, the Turkish FIAT currency proves them wrong.
Turkey has been a country in conflict. There have been a number of controversies erupting in the country for several years now, and the recent economic instability has caused quite an uproar in the nation. In fact, the economic meltdown of Turkey has come to such a point that even Bitcoin, which is usually criticized for being ‘unstable’ appears to be stable compared to the Turkish Lira.
Because of the fluctuations in the currency value, against the US Dollar. People from Turkey have started showing more interest in cryptocurrencies and blockchain. We also reported about the launch of BlockchainIST, A university-level center for research on blockchain.
The price of Lira against the US Dollar has been on a constant decline and has halved since January. As per reports from Turkey’s Google Search Trends, the interest in Bitcoins has shot up since August and in just the past week, search volumes have increased by as much as 150%.
Turkey is another of those nations which have had a rather dilly-dallying stance when it comes to cryptocurrencies. The country’s Directorate of Religious affairs still believes that “Bitcoin and other cryptocurrencies are haram” in Islam. However, as reported in our of our news reports,
Deputy Chair of Turkey’s Nationalist Movement party not only proposed cryptocurrency regulations but also about having a coin called TurkCoin.
Ever since the proposal by the Deputy chair, the country has supported cryptocurrencies and blockchain. In fact, Turkey has become one of those countries where most banks and institutions continue to support cryptocurrency exchanges and there are no hard and fast laws that govern cryptocurrencies in the nation.
The fact that the 10-day realized volatility of the Turkish Lira is higher than that of Bitcoin should be an eye-opener for those who continue to believe that cryptocurrencies are unstable as a store of value and that fiat currencies should continue forever. At the wake of even a hint of a geopolitical crisis, fiat currencies too tend to go equally unstable.
Some of the most popular examples of this, apart from the fall of Lira can be the recent economic crisis which is being faced by Venezuela as well as the inflation in Zimbabwe, which infamously saw Trillion-dollar notes being created in the country.
