The dramatic drop of Turkish lira has given a big boost to cryptocurrencies use these days in Turkey, according to Reuters. Recent figures show that the beheading of Turkish Central Bank governor Naci Agbal by president Erdogan has accelerated the already large increase in the country's cryptocurrency market. In fact, between March 20 and 24, when lira plunged 10% after Agbal's dismissal, cryptocurrency trading reached 23 billion TYR ($ 2.8 billion), compared to $ 1 billion last year's respective period of time.
At the same time, investors are hoping to profit from the rise of bitcoin, but also to avoid the effects of inflation. According to Reuters, after the beheading of Naci Agbal, the Turkish currency has lost 13% of its value, which intensifies fears of a more relaxed policy and rising prices that could further reduce the value of the pound.
This increase shows the huge interest in cryptocurrencies worldwide, after the recent new record of bitcoin at $ 62,000, as major companies and investors turn to it. The latter believe that a weaker lira, inflationary pressures, as well as hopes for quick profits, are responsible for increasing demand. In fact, many are unaware of the increased volatility in cryptocurrencies, which, as financial authorities in many countries have warned, could lead to huge losses.
According to Reuters, the rise of bitcoin in record prices is taking place at a time when governments and central banks are trying to deal with the economic disaster caused by the coronavirus. In Turkey, inflation rose more than expected, reaching 16% in February, well above the target of 5%. Both residents and businesses in the country have long since begun investing in gold and foreign currencies to protect themselves against pound fluctuations, which has also brought dollar conversions close to new records.