Investors Turn To Bitcoin In Turkey As Lira Value Slips

The Turkish Lira value took a huge hit today, bringing the currency down 13% for the day and more than 45% for the year.

Fiat Vs. bitcoin

Today the value of the Turkish Lira sank almost 16% before slightly retracing to 0.155 TRY/USD, currently a 13% loss for the day.

This brings the value of the Turkish Lira down more than 45% from this time one year ago.

bitcoin enthusiasts took to Reddit to claim another victory in its performance against national fiat currencies, with one user claiming “Holding bitcoin is less risky than holding Lira.”

Many investors who are new to cryptocurrency may argue that statement is not true because bitcoin is technically down nearly 70% on the year to date. The real focus, however, should be on the larger picture.

Looking at the price of bitcoin 00 over the course of the past year, we can see it gained just under 40% value. Even in a large market correction like the one we are currently seeing, bitcoin continues to outperform yet another national fiat currency.

Where To Turn?

It was announced today that the United States would be doubling its tariffs on importing Turkish steel and aluminum. This move prompted investors to trade their Lira for stronger currencies like the US Dollar or Japanese Yen, and it also seems that many went the way of changing Lira into bitcoin.

Turkish bitcoin exchanges are reporting huge volume increases over the past day. Turkey’s largest exchange Koinim is reporting a 63% increases in bitcoin volume, while exchanges like BTCTurk and Paribu are reporting increases of 35% and 100% respectively.

Trust in fiat currency is getting to be a large uncertainty in most parts of the world. Venezuela is currently in a similar situation seeing cryptocurrency volumes surge amid the hyperinflation of the Bolivar.

The future for fiat is not looking any brighter, as worldwide trade wars loom over us and economic crises are causing governments to inflate national currencies to nonviable levels.

These scenarios are occurring at an increasing rate, and they beg the question — will more investors start turning to bitcoin in the near future as more and more national currencies tank?

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Do you think more people will continue to invest in bitcoin in times of national financial downturns? Will bitcoin continue to outperform even more national currencies in value? Let us know your thoughts in the comments below!

Images courtesy of Tradingview, Shutterstock

Published at Sat, 11 Aug 2018 19:00:49 +0000

bitcoin

March 29, 2017

Bitcoin Price Rebounds Over 10% But It’s Not Why You Think

The wonderful world of bitcoin is a fascinating online roller coaster ride. What the mainstream calls “volatility” we call a time for “Hodl.” bitcoin price resumed it’s upward volatility on Monday into Tuesday morning, gaining over 10%, and I’m going to tell you why.

bitcoin PRICE GAINS ON WEAKER DOLLAR

bitcoin price rebounded sharply entering the final week of March and it really had nothing to do with bitcoin. The greater economic markets were the key to bitcoin’s success as the U.S. Dollar took a beating yesterday. This was largely in reaction to the health care vote debacle late on Friday afternoon, when President Trump had to pull the new health care proposal of Paul Ryan for not having enough votes to pass.

This occurred too late on Friday for the market to react, so this carried over to Monday morning when the U.S. Dollar reached a four-month low, the Dow Jones dropped to its lowest point since 2011, and the USD crashed compared to every major currency, CNY, Euro, and yes, bitcoin.

The USD’s market weakness means dollars can buy fewer Bitcoins, so bitcoin value increases against the USD, which is what the bitcoin price represents. bitcoin rose from about $950 USD to over $1,060, as of this writing.

THIS IS HOW IT WORKS FOR YOU

As I went over in a previous article, Why bitcoin Price Will See Huge Gains For The Next 10 Years, one of the main reasons bitcoin is going to gain value over time is the inherent weaknesses in the greater economic market, which is based on debt.

The U.S. Dollar market is the most influential and strongest financial market in the world, and when Janet Yellen raises interest rates by twenty-five basis points, the economy goes into a tailspin. This should show you how weak the other markets are if the U.S. financial system is this fragile. bitcoin price will take advantage most of the time, and there is plenty of economic turmoil coming down the pike.

Another market condition that should be taken note of is the fall in the value of altcoin Dash, which has fallen more than 10% over the last 36 hours, almost the exact same time bitcoin started to rally.

Dash and bitcoin clearly have an inverse relationship. As one gains, the other falls, and if people see bitcoin on a run, they pull their Dash to get in on the action. A smart investor will take advantage of these relationships and market forces in the future. Dash being an economic hedge against bitcoin is not a bad place to be. Robin was pretty damn famous in his day, and beyond.

* * * * *

ONE CHAPTER CLOSES; ANOTHER BEGINS

In an aside, I will no longer be writing articles for Bitcoinist after today. I will be moving back to the United States to build my million-dollar consulting business, Smart Beta Consulting, from this point forward. SBC will focus on bringing high-net-worth individual investors in the U.S. and Canada into the digital currency fold, trading fiat currency for global decentralized currencies like bitcoin and Ethereum.

If you know an avid investor who is looking to get started with bitcoin, feel free to send them over. They can do it. Smart Beta Consulting can help.

In closing, no matter where I roam, you can bet your last Satoshi I will be working to help someone learn more, buy more, and do more with “The Future of Money”. This is what I have been doing for the last three years of my life, and I will continue to do it until I can do it no longer. Thank you for your support of me and Bitcoinist. We all appreciate it and we do this work for you, the bitcoin community.

Take care and I’ll see you on the moon!

At what price will bitcoin stabilize? Share your thoughts below!

Image provided by bitcoin Average, Shutterstock

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