Economic Crisis in Turkey: Bitcoin Exposed as Better Option Than Emerging Markets


Bitcoin and the S&P 500 rose a lot since the March crash, but global economies are still drowning.

People are losing jobs left and right, consumer trust is disappearing, and foreign currencies are on a free fall against the dollar.

The last problem is really visible in Turkey, where their currency, lira, is on a downward path, and the socio-economic atmosphere is turning for the worst.

According to reports and seeing how the country is susceptible to digital currencies, BTC could be a positive light in all of this and maybe better than emerging marketplaces.

Turkey Can Be a Bitcoin Boon

Sure, it’s bad everywhere, but it’s particularly bad in Turkey.

The Turkish lira fell to record lows against the dollar, thanks to problems between the economists, the government, and the media. This happened after the government singled out foreign powers as the foes that caused the currency issues, while the opposition points fingers at the government.

All in all, fund manager and gold aficionado Dan Tapiero noted that Bitcoin just makes sense.

Messari’s Qiao Wang also highlighted that Bitcoin was outperforming the Argentine Peso and will be doing the same with other cryptos, the Turkish lira included.

More Macro Reasons for Bullish Stances

There are more reasons why macro investors are bullish on BTC.

The Fed adopted a lax monetary plan in recent times, which reached its peak when they announced a lending program of trillions of dollars and a 0-0.25% interest rate. This was done to revive the economy in the States.

This caused the stocks in States to jump up, which was seen in measures M1 and M2, which went up 25% and 12% since 2020 started. This was not real hyperinflation, but macro investors do not like it.

Tapiero recently wrote on M2 growth that it was one of the most important charts he has seen in three decades. According to him, that speed and shift in liquidity are not to be seen again. He highlighted long gold and Bitcoin.

He further believes that the historic stimulus coming from governments worldwide and monetary authorities are showing why we should turn to Bitcoin. There is a sharp difference between the fiat money inflation and the hard-capped supply of BTC.