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Turks traded $1.8 billion in cryptocurrency in the wake of Lira crash in Q4 2021

Turkish citizens are putting their money into bitcoin and tether to protect themselves from the country’s soaring inflation rate.  The fourth quarter of 2021 saw cryptocurrency trade volumes utilizing the Turkish lira reach an average of $1.8 billion, a significant rise over previous quarters. Turkey’s inflation rate increased by 36% in December 2021, reaching a […]

The post Turks traded $1.8 billion in cryptocurrency in the wake of Lira crash in Q4 2021 appeared first on BitcoinerX.

Turkish citizens are putting their money into bitcoin and tether to protect themselves from the country’s soaring inflation rate. 

The fourth quarter of 2021 saw cryptocurrency trade volumes utilizing the Turkish lira reach an average of $1.8 billion, a significant rise over previous quarters.

Turkey’s inflation rate increased by 36% in December 2021, reaching a 19-year high. The cost of basic necessities such as food and commodities, as well as transportation, has been affected. 

Turkey has not raised interest rates to combat inflation, as many other countries have done, resulting in the Lira losing 44% of its value against the US dollar by 2021.

The root of all evils

Interest rates, according to Prime Minister Tayyip Erdoan, are “the mother and father of all evils,” and Turkey is undergoing an economic transition. 

Whatever steps have been taken thus far, however, have only harmed household incomes.

As a result, Turks are switching to bitcoin and the USDT stablecoin. The former, in particular, has been promoted as an inflation hedge. 

It has been one of the primary drivers of adoption, and citizens in many other nations with high inflation rates have also purchased the asset.

Is crypto a viable option as inflation rises?

Turkey is hardly the only country that has seen high inflation in recent years. According to the country’s Labor Department, inflation in the United States is at an all-time high, with the fastest 12-month increase rate in 40 years.

Such occurrences are essentially pushing the hand of ordinary individuals, who are still suffering from the pandemic’s impacts. 

Many people see bitcoin and other crypto-assets as a way out at such a trying time.

Since governments began implementing measures to combat the economic repercussions of the COVID-19 pandemic, inflation has been a major discussion point. Bitcoin prices soared to $69,000 in November 2021 as a result of this.

 

Image courtesy of Cointelegraph News/YouTube

The post Turks traded $1.8 billion in cryptocurrency in the wake of Lira crash in Q4 2021 appeared first on BitcoinerX.

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Source: https://bitcoinerx.com/blockchain/turks-traded-1-8-billion-in-cryptocurrency-in-the-wake-of-lira-crash-in-q4-2021/

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