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- 1 The residents of Turkey are investing in crypto markets, especially stablecoins.
- 2 Lira, the Turkish currency, shows depreciation over the last two years.
Turkey residents are diverting towards the crypto market. Their diversion is immensely increased after the presidential election. Though people have started searching and investing in stablecoin in early May, prior to the elections, they are continuing with ongoing passion.
The possible reason for this is the downfall of its native currency, Lira. Presently, its value equals $0.042, whereas priorly two years back, it was $0.15.
Recep Erdogan, who had won the election by 52% of votes and secured the position for the next 5 years is not a crypto fan. On the other hand, his rival, Kemel Kilicdaroglu, who lost due to two million fewer votes, has shown his interest in the crypto market.
Fall of Native Currency Pushes Crypto Investment
Currently, Turkey natives are engrossed in the largest stablecoin USDT. They feel safe investing this way because the coins are pegged with the U.S. dollars.
Although the fall of native currency is worrisome, people feel safe investing in assets pegged with the U.S. dollars. The regulators in Turkey have implemented restrictions on buying of gold, either with the Dollar or Lira.
Former banker and university lecturer, Ibru Guven, shared his view regarding this. He said investing in stablecoins is the best way to save some money when inflation is high. It offers value for money, and it is the only motivation for people to buy stablecoins.
Locals Investing in Stablecoin
Most of the locals in Turkey are investing their money in the crypto market. One such example is of Batuhab Basoglu, a young 28-year old graphic designer. He stated that before the election, he felt the need to invest his Turkish lira into U.S. dollars. The reason he admitted is uncertainty related to currency in the future. He bought Tether to avoid any risks.
Desislava Aubert, an analyst with a company, said that besides the situation of downfall in currency, the demand for stablecoin is always high. The new fall in the native currency raised the inflation. Eurasians have shifted their interest in stablecoins because of their stable nature as it provides relief from the market turbulence.
Uncertainty Opened the Gates for Crypto
Uncertainty is created in the market due to the downfall of the Lira. To avoid this doubtful situation, stablecoins are considered safer. Stablecoins can be treated as a traditional currency because they are less volatile, and their value is pegged with stable digital assets.
The fear of inflation has made many Eurasians invest in stablecoin. They have shown their credibility and usefulness as they are pegged with value; thus, saving a lot from economic insecurity.
Generally, gold is considered an inflation hedge, but the authorities in Turkey have banned buying gold with lira or dollars. Hence, the other reliable way trusted by Eurasians is investing money in crypto. People are looking for alternative investments to secure money.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
