As the Turkish lira collapses, is bitcoin a good alternative?

• Over the course of the past 10 years, there have been many sceptics on the world of cryptocurrencies. 
• Steve Hanke has said that a gold-backed currency could save Turkey as its national Fiat currency collapses during the pandemic of COVID-19. 

Over the course of the past 10 years or so, there have been many sceptics on the world of cryptocurrencies. One famous bitcoin sceptic in particular, Steve Hanke has said that a gold-backed currency could save Turkey as its national Fiat currency collapses during the pandemic of COVID-19. 

Writing in a tweet earlier this month, Steve argued that physical cash was now the only way out for the country of Turkey. The country has recently spent billions of dollars in propping up the lira.

#Turkey’s #Lira is toast. The central bank’s net foreign assets are a staggering negative $32 billion. Turkey has run out of ammunition in its futile defense of the hopeless lira. Only a gold-backed currency board can save the lira.https://t.co/d5dheA2ymS

— Prof. Steve Hanke (@steve_hanke) August 3, 2020

As the United States dollar gets weaker and weaker by the day during the pandemic, this has meant that the lira-dollar pair avoided a record of its own and dropped to its lowest levels since May this year.

The reason that Steve is such a sceptic on bitcoin is that he once described it as not a real currency. He joins the likes of Peter Schiff, a well-known advocate for gold and a well-known hater of Cryptocurrency.

For many traditional investors, bitcoin is one of those things that you either love or hate. The idea of bitcoin may not be for you but the technology behind it, blockchain is something that is undeniably interesting and exciting. 

I suppose the question is raised as to whether bitcoin would be a well-backed currency for Turkey over gold. Many crypto enthusiasts would probably agree with the statement but as to how effective it would be, is up in the air.

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!