Bitcoin holders in Turkey avoided a major fiasco by holding on to the prominent crypto as it hit a new all-time high while the country’s fiat Lira tumbled.
According to TradingView data, Bitcoin (BTC) surpassed 700,000 Turkish lira today. Conversely, the Lira dropped by a substantial 15% against the US dollar in a single day.
The Eurasian nation is in the middle of a currency crisis. Its president Recep Tayyip Erdo? ana is battling to keep interest rates as low as possible. This has subsequently led to the unofficial slump of the Lira’s exchange rate. Put in perspective, the USD/TRY pair gained by 14% on November 23rd to pass 13 for the first time.
As several Turks are experiencing a sharp decline in purchasing power as a result of this development, those with significant BTC exposure are nicely insulated against this. According to Michael Saylor, chief executive officer of MicroStrategy, in a statement last week, it is now more imperative for Turkey to consider adopting BTC as a defense strategy against further currency devaluation. As Saylor put it:
“The currency has lost a third of its value since March and declined for nine consecutive years. Conversion from TRY to USD will merely slow the collapse, while adoption of BTC will reverse the damage & revitalize the economy.”
Image Credits: Pixabay
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