Political tensions between the United States and Turkey now seem to be at an all time high. The crash of the Turkish Lira and footage of President Erdoğan using US Dollar notes to blow his nose are only amplifying the situation, a situation which is leading many to believe that Bitcoin adoption is the only solution. If Turkey and the USA are a Mathematical formula, then X = Bitcoin.
According to Bitcoin.com:
“Latest reporting out of Washington appear to signal no deal struck between the Trump administration and the government of Turkey under President Recep Tayyip Erdoğan, potentially deepening an already fragile financial situation. Turkey’s lira has crashed double digits in recent months, and further as tensions between the two countries, over an American pastor’s jailing, continue to worsen. With a devalued currency, rampant inflation, and the usual political answers impotent, the situation in Turkey appears ripe for bitcoin adoption.”
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One of the key accelerants within this, is the capture of a US Pastor by Turkish officials on the grounds of terrorism charges. It now transpires that this has been done to act as a bargaining tool between the United States and Turkey, in order to reduce the sanctions and fines imposed on Turkey by the United States, for some sort of alleged involvement with Iran. As we’re not a politics website, we’ll stay out of the political detail
This however has brought Bitcoin to the fore once again, with many believing the cryptocurrency offers Turkish citizens a chance to save themselves, and their money. Turkish exchanges have seen a huge leap in trading volume, suggesting that Bitcoin is something the locals are interested in, but generally, it offers citizens the capacity to pull themselves out of this one, for real.
Indeed, according to Bitcoin.com, it’s something that the CEO of Coinbase, Brian Armstrong agrees with:
“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.”
In essence, it seems that Turkey’s not-so-perfect situation, is the perfect situation and highlights the perfect time to buy Bitcoin.
Is Turkey about to see a mass adoption of Bitcoin?
The answer to this question lies within how political tensions escalate and of course, lies within any future bailout plans that external authorities could assist Turkey with. Before Bitcoin is adopted, the future of the Lira needs to be set in stone.
Moreover, for this to happen the Turkish government also need to open up to Bitcoin adoption, something that is unlikely. On an underground level though, Bitcoin now has the chance to make a very big impression in Turkey, one that could sell a story to the rest of the world about the power of crypto within a global economic crisis.
So yes, whilst X = Bitcoin, we’re not quite at that moment in time just yet, it seems.