The recent economic sanctions placed on Turkey by the Trump administration has affected the country’s currency alongside other economic activities. The situation has thus forced quite a number of the citizens to look towards the direction of Bitcoin, to save themselves from the economic crisis.
Future Of Bitcoin
Brian Armstrong, the Chief Executive Officer of Coinbase, while being interviewed elaborated on the way forward for the cryptocurrency world and what the future looks like for the virtual currency. The Coinbase boss explained that the future of the currencies is very secure, he explained further that the economic crises that are affecting most countries would force most of them to look towards cryptocurrencies for survival.
“Countries going through economic crisis and pockets of people in those areas are getting interested [in crypto]. There is interest among those people with the highest pain point in having stable currency […] In the next three-five years countries going through economic crisis could see people organically adopting crypto as an alternative,” he said.
The Ankara Example
The current political tension between Erdogan and Donald Trump took another dimension as the United States government placed economic sanctions on the country. The sanction that was directed towards the steel and aluminum sector affected the country’s Lira – the local currency, as it dropped by over 20% within a few hours of the ban.
Major stakeholders in the country had to look for alternatives to stay economically healthy, and in bitcoin, they found solace. Turkish exchanges have benefitted from the situation, as Koinim, the largest exchange in the country reported a 63% increase in Bitcoin trading volume. Others exchanges too were not left out, as BTCurk and Paribu exchanges also witness a surge in their trading volumes which stood at 35% to 100% respectively.
The activities of Bitcoin in the country shot the price up, as the coin now trades at $7000.
Though Lira remains the official currency of the country, most of its citizens are now seeing Bitcoin as their escape route to avoid the Lira-Dollar tussle.
The economic team in the multi-cultural European nation are seriously deliberating about how to survive as a country despite the sanctions as Turkey is not ready to bow to the pressure from the American government.
Though the country is still skeptical about the virtual currency, observers are of the opinion that the country might soon give in to crypto, if other options fail at the roundtable discussion.