TL; DR Breakdown
- Turkish Lira decline opens the door for Bitcoin adoption
- The currency continues to decline against the dollar
- Michael Saylor wants countries in inflation to consider Bitcoin
One of the reasons most traders enter the crypto sector and make investments is to recoup massive profits. Asides from that, other traders are forced into the market due to economic conditions. Such conditions as inflation necessitate that traders hedge their funds in case of a decline in the economy. Bitcoin is an excellent bet against inflation as it has worked wonderfully well for people who have invested in the asset in the past. The Turkish Lira is presently on a steep decline as inflation is taking over turkey, opening a gap for the adoption of Bitcoin.
Turkish Lira continues to collapse against the dollar
According to multiple reports, the economic crisis started in the European country after the premier bank cut its borrowing cost. This is the third time the Turkish central bank has been doing this in the last three months, pushing the Turkish Lira down against the dollar. A report by a journalist on Wall Street mentioned that the central bank cut down a very important rate by 1%.
With the move, there have been speculations all around the country of potential price stability. According to recent records, the Turkish Lira is trading at 11.311 against the US dollar, leaking a decline of 6% against the dollar. The report stresses that the current fall is the biggest to have occurred in the past eight months. With the inflation rate in the country already at 20%, the president of Turkey, Erdogan Recep, has resolved to stand by his vision of seeing an end to interest rates in the country.
Michael Saylor advises countries in inflation to adopt Bitcoin
Investors across the globe have identified Bitcoin as one of the best instruments to hold money against an inflationary economy. The same vision is shared by citizens in countries whose economies are undergoing the same issues. In a recent tweet, Microstrategy CEO Michael Saylor advised Turkey citizens to turn to Bitcoin. Giving his reason, Saylor mentioned that the currency has continued to lose its value against the dollar in the past nine years. He opined that the effects would be lesser on Turkish citizens if they held Bitcoin rather than holding dollars.
Michael Saylor, in the past, has consistently pointed out the need for the adoption of the first digital asset by citizens in bad economies. He notes that holders of Bitcoin in these countries will be able to live well off the assets gains. Asides from Turkey, there has been news about countries such as Argentina and other Latin American countries battling inflation.