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With the Turkish lira currently suffering more than a 50% loss in purchasing power against the dollar, more and more Turks are turning to crypto to protect themselves from their own currency.
A way out of fiat currency
With their economy in tatters, Turks are looking for a way out of the fiat monetary system and a seemingly inept government that is failing them horribly.
As many in the West would testify, an inflation rate of more than 2% means hardship and a constant erosion of wealth. More than 50% inflation must be more than flesh and blood can bear, so Turks are putting their wealth into the very few stores of hard money that exist.
Traditionally these have always been gold and silver. However, cryptocurrencies have also emerged as a hedge against inflation and debasement of currencies.
Even though the vast majority of cryptocurrencies are probably poor stores of value, the likes of bitcoin and ethereum have been proving their worth over the last several years.
Crypto investment growing rapidly
According to the 15th report by Kucoin in a series of reports on how crypto is impacting on Turkish people, more than half of the population between the ages of 18 to 60 are now invested in crypto.
The number of Turkish investors is increasing rapidly, even during the current downturn in the crypto market. Additional crypto investors are primarily coming from the younger generation with 48% between the ages of 31 to 44, and 37% between the ages of 18 to 30. 36% of this younger group have invested an average of more than 100,000 Turkish lira ($3,743).
In a survey carried out by Kucoin on the motivations for investing in crypto, the following were cited by Turkish investors:
Future wealth - 58%
Value storage - 37%
Ease of transfers - 34%
Portfolio diversification - 25%
Quick profit and excitement - 17%
A good level of crypto education
The fact that most of those surveyed invested in crypto for long-term wealth says much about the parlous state of the mismanaged and grossly unfair Turkish lira and a growing belief in the private money that is crypto.
Turkish investors also appear to be better educated in crypto, given that an average of 71% invest in bitcoin, 45% in ethereum, and 33% in stablecoins. A far fewer number are putting their money into the uncertainty of the vast majority of altcoins.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.