Bitcoin Investors Eye Turkey As Lira Plummets 20%

[seje]

https://www.forbes.com/sites/workday/2018/07/25/global-finance-leader-study-finance-leaders-share-the-top-risks-that-matter-most/#88a1aa64891e

Bitcoin and cryptocurrency trading volume on Turkey's exchanges has surged over recent days as the country battles to contain a currency crisis that looks set to continue into this week.

Koinim, Turkey’s largest exchange, has reported a 63% increase in Bitcoin trading volume, while the BTCTurk and Paribu exchanges have said their volumes are up 35% and 100% respectively, according to CoinMarketCap data.

Unlike Iran, where a ban on bitcoin and cryptocurrency trading means those wanting to buy bitcoin must turn to peer-to-peer exchanges like LocalBitcoins, banks in Turkey often still work with local exchanges, meaning fresh adopters can begin buying and trading more easily.

As a result, bitcoin trading volume in Turkey on LocalBitcoins has not increased as much as it has on local exchanges.

bitcoin price exchanges chart
Bitcoin volume on global peer-to-peer exchanges like LocalBitcoins has not increased as much as local Turkish exchanges in recent weeks.COINDANCE / LOCALBITCOINS


Meanwhile, bitcoin and cryptocurrency users in the country have been speaking of their fears over Turkey's currency crisis and economy.

One bitcoin user in Istanbul who goes by a pseudonym, Bitmov, told CoinDesk he has been using bitcoin to buy digital ads abroad for over three years.

"I started personally trading crypto 1.5 years ago because of the weakness of the Turkish lira, and fear of the political, and financial, status of the Turkish government," Bitmov told CoinDesk. "Cryptocurrency makes me feel much safer."

MORE FROM FORBES
Another bitcoin user, who prefers to use his Twitter handle, Bit_gossip, told CoinDesk: "Every day there are new [bitcoin] exchanges coming up in Turkey."

bitcoin price Twitter screenshot
Bitcoin and cryptocurrency traders around the world have been talking about the sudden drop in the value of the Turkish lira.@HERRVONBRAUN / TWITTER

An escalating dispute with U.S. President Donald Trump over tariffs on Turkish steel and aluminum and concerns about the health of the Turkish economy meant the Turkish lira lost a fifth of its value against the dollar last week, pushing it to record lows and down around 45% so far this year.

And the Turkish lira has continued to slide despite the country’s finance minister promising to implement a market-calming plan on Monday.

Finance Minister Berat Albayrak said in a Sunday interview with local media outlet Hurriyet that Turkish institutions will take "necessary steps", though Reuters reports few specifics were provided.

Albayrak's comments come hours after Turkey's President Recep Tayyip Erdogan railed against high interest rates and described the plunge in the country’s currency as a foreign "operation".

Erdogan also called on Turkish citizens to exchange any dollars, euros or gold they own for the lira to prop it up, according to media reports.

Now Turkey risks a Venezuela-style move towards bitcoin and cryptocurrency if people lose faith in its currency.

[Pursuer]

Unlike Iran, where a ban on bitcoin and cryptocurrency trading means those wanting to buy bitcoin must turn to peer-to-peer exchanges like LocalBitcoins, banks in Turkey often still work with local exchanges, meaning fresh adopters can begin buying and trading more easily.

bitcoin is not banned in Iran. the difference is that there is no centralized exchange in Iran for people to trade at so they have to use peer to peer trading or outside the  country ones and they have been doing that for the past years. so this is not new.
the ban was banning banks from investing in cryptocurrencies and that is not limited to this country. a lot of countries in the world already have such bans.

[jseverson]

For some perspective, here are the listed exchanges' Bitcoin 24h trading volumes as of this moment according to Coinmarketcap:

Koinim: $235,661   
BtcTurk: $3,367,240
Paribu: $6,686,483

The largest exchanges typically deal with hundreds of millions. I acknowledge that there may be an increase in their trading volume and that that certainly suggests increased demand for Bitcoin, but there's no mass exodus to crypto as the article may suggest.

Still, I find it great that people can (and there are quite a few people that do) turn to crypto in times of domestic unrest. The number could be much greater considering the stakes, but I guess crypto will have to earn more trust first.

[Red-Apple]

at times like this there obviously is an attraction towards bitcoin. specially by those people who have already been familiar and involved with bitcoin. they t rust it more. but exchange volumes alone are not a good indicator of increased adoption. for example if you look at the previous couple of days you can see that we had one of the bigger drops in bitcoin price where it went from near $7k down to $6.9k which was a major thing because it went momentarily below the buy support and that alone always increases the volume all over the market.

[avikz]

For some perspective, here are the listed exchanges' Bitcoin 24h trading volumes as of this moment according to Coinmarketcap:

Koinim: $235,661   
BtcTurk: $3,367,240
Paribu: $6,686,483

The largest exchanges typically deal with hundreds of millions. I acknowledge that there may be an increase in their trading volume and that that certainly suggests increased demand for Bitcoin, but there's no mass exodus to crypto as the article may suggest.

Still, I find it great that people can (and there are quite a few people that do) turn to crypto in times of domestic unrest. The number could be much greater considering the stakes, but I guess crypto will have to earn more trust first.

You are correct in the numbers but did you have the previous volumes as well. I don't see any link in coinmarketcap website that can provide us with the previous volumes of any particular exchange. So I believe the numbers were much lesser than the current level. Lira has been dropping since a while now and even though Mr. Erdogan assured people about their internal economy is robust, there are few percentage of the population who would like to hedge against this risk.

Obviously it is not a mass exodus, but it is good that people are entrusting bitcoin and other cryptos to safeguard their wealth. P2p exchanges will not come into picture here because people are not buying their own fiat currency. Instead they are hedging against the risk by replying on crypto VS Dollar value. If they succeed at the first attempt, the trust quotient is bound to increase. Only time will tell the effectiveness of such hedging.

[jseverson]

-snip-

You are correct in the numbers but did you have the previous volumes as well. I don't see any link in coinmarketcap website that can provide us with the previous volumes of any particular exchange. So I believe the numbers were much lesser than the current level.

We could take the article's word for it:

Koinim, Turkey’s largest exchange, has reported a 63% increase in Bitcoin trading volume, while the BTCTurk and Paribu exchanges have said their volumes are up 35% and 100% respectively, according to CoinMarketCap data.

If we do the math, we end up with:

Koinim: $144,577.3
BtcTurk: $1,679,437.03
Paribu: $3,343,241.5

They're not going to be precise numbers, but they should be close to the article's reference point. Either way, the volume is low to begin with so small percentage spikes is still somewhat insignificant in the grand scheme of things. I wanted to point out that the article made it sound more significant than it actually is by not citing the actual numbers.

Obviously it is not a mass exodus, but it is good that people are entrusting bitcoin and other cryptos to safeguard their wealth. P2p exchanges will not come into picture here because people are not buying their own fiat currency. Instead they are hedging against the risk by replying on crypto VS Dollar value. If they succeed at the first attempt, the trust quotient is bound to increase. Only time will tell the effectiveness of such hedging.

I agree. It's not very significant, but I like how crypto trading volume spikes can be correlated to domestic unrest because it can imply that people trust crypto more than their governments.

[renhecy]

The turkish lira has lost tremendous value in recent days. I think this decline will continue for a while. in this case it makes more sense to get dollars for investors in Turkey.

[NyxAssasin]

Turkish lira has been losing a lot of its value for the past few days. So people has been investing in crypto in order to minimize any uncertainty or losses. It’s a good thing that people are turning to crypto during economic unrest. It will surely put a positive effect in other countries when they hear about it. That way, there will be more reliability in cryptos.

[cryptodreem]

The rise of the Turkey market indicates that in coming times the impact of Crypto market will be worldwide and it will involve in world economy which will be good for the world

[zxrcoin]

bitcoin is not banned in thos countries but still the users have to face some issues because they can't directly access this from there and because of these kinds of issues , bitcoin price at turkey is falling bit low but we can hope that soon situation will be changed

[fidelium1]

At this point in time, I think investments by Turkish investors in bitcoin is a step in the right direction.With the extremely high volatility now being experienced by the Lira, it was always going to be a matter of time  until the people started seeking for an  alternative.                                                                                       

[swaggerkeme]

The government needs to do more to allow investors to freely put their money in crypto investment especially bitcoin. The prospects of bitcoin are so high in the near future for any country to deprive its citizens of the opportunities bitcoin presents.

[vy99]

The Turkish government could have a coup any day, that seems even more of a risk than Bitcoin is. If I was Turkish I wouldn't keep my money in lira.

There's a lot of debate about whether the "coup" from a couple years ago was legitimate or if it was just Erdogan trying to attain more power. But either way you're right that things are very unstable in Turkey and it's better to keep your money in crypto than the Lira.

[pooya87]

The Turkish government could have a coup any day, that seems even more of a risk than Bitcoin is. If I was Turkish I wouldn't keep my money in lira.

There's a lot of debate about whether the "coup" from a couple years ago was legitimate or if it was just Erdogan trying to attain more power. But either way you're right that things are very unstable in Turkey and it's better to keep your money in crypto than the Lira.

no it is not better at all.
usually when you see your country's currency value dropping like that, you want to store your money somewhere that is safe and can "store your value". in "crypto" this is not possible. most of them are not even safe and all of them are volatile.
as for bitcoin, it is the safest thing that you can find but the price is volatile and specially these days there is a chance of drop. so i don't think that many people are considering bitcoin at least not as their primary investment.

[Satish147]

https://www.forbes.com/sites/workday/2018/07/25/global-finance-leader-study-finance-leaders-share-the-top-risks-that-matter-most/#88a1aa64891e

Bitcoin and cryptocurrency trading volume on Turkey's exchanges has surged over recent days as the country battles to contain a currency crisis that looks set to continue into this week.

Koinim, Turkey’s largest exchange, has reported a 63% increase in Bitcoin trading volume, while the BTCTurk and Paribu exchanges have said their volumes are up 35% and 100% respectively, according to CoinMarketCap data.

Unlike Iran, where a ban on bitcoin and cryptocurrency trading means those wanting to buy bitcoin must turn to peer-to-peer exchanges like LocalBitcoins, banks in Turkey often still work with local exchanges, meaning fresh adopters can begin buying and trading more easily.

As a result, bitcoin trading volume in Turkey on LocalBitcoins has not increased as much as it has on local exchanges.

bitcoin price exchanges chart
Bitcoin volume on global peer-to-peer exchanges like LocalBitcoins has not increased as much as local Turkish exchanges in recent weeks.COINDANCE / LOCALBITCOINS


Meanwhile, bitcoin and cryptocurrency users in the country have been speaking of their fears over Turkey's currency crisis and economy.

One bitcoin user in Istanbul who goes by a pseudonym, Bitmov, told CoinDesk he has been using bitcoin to buy digital ads abroad for over three years.

"I started personally trading crypto 1.5 years ago because of the weakness of the Turkish lira, and fear of the political, and financial, status of the Turkish government," Bitmov told CoinDesk. "Cryptocurrency makes me feel much safer."

MORE FROM FORBES
Another bitcoin user, who prefers to use his Twitter handle, Bit_gossip, told CoinDesk: "Every day there are new [bitcoin] exchanges coming up in Turkey."

bitcoin price Twitter screenshot
Bitcoin and cryptocurrency traders around the world have been talking about the sudden drop in the value of the Turkish lira.@HERRVONBRAUN / TWITTER

An escalating dispute with U.S. President Donald Trump over tariffs on Turkish steel and aluminum and concerns about the health of the Turkish economy meant the Turkish lira lost a fifth of its value against the dollar last week, pushing it to record lows and down around 45% so far this year.

And the Turkish lira has continued to slide despite the country’s finance minister promising to implement a market-calming plan on Monday.

Finance Minister Berat Albayrak said in a Sunday interview with local media outlet Hurriyet that Turkish institutions will take "necessary steps", though Reuters reports few specifics were provided.

Albayrak's comments come hours after Turkey's President Recep Tayyip Erdogan railed against high interest rates and described the plunge in the country’s currency as a foreign "operation".

Erdogan also called on Turkish citizens to exchange any dollars, euros or gold they own for the lira to prop it up, according to media reports.

Now Turkey risks a Venezuela-style move towards bitcoin and cryptocurrency if people lose faith in its currency.

I heard this news recently that Lira price is fallen significantly more than 20 to 30% in few months. This one impacted not only turkey but also emerging countries like India. This is happening only because of our largely dependency on US dollars. US dollar is accepted as universal currency whereas other currencies are not exposed to that level. The US country also taking advantage on this by introducing new restrictions and in other way. Due to this change fiat rates we are badly paying higher amounts for our daily use goods and services.

We need to avoid large dependence on US dollars by adopting public cryptocurrencies. But that time has not come. Once the currency prices are stabilised then no one controlls the currency.

[anderson705]

The government needs to do more to allow investors to freely put their money in crypto investment especially bitcoin. The prospects of bitcoin are so high in the near future for any country to deprive its citizens of the opportunities bitcoin presents.

Because of economic instability and turmoil people is looking for another avenue to park their money. They want a safer haven where they can control and bitcoin or cryptocurrency is a perfect avenue to start with. Transferring assets to digital currency is a boon to government, wherein they cant control nor regulate it. This is a a must watch scenario for turkey in my opinion.

[Pursuer]

The government needs to do more to allow investors to freely put their money in crypto investment especially bitcoin. The prospects of bitcoin are so high in the near future for any country to deprive its citizens of the opportunities bitcoin presents.

Because of economic instability and turmoil people is looking for another avenue to park their money. They want a safer haven where they can control and bitcoin or cryptocurrency is a perfect avenue to start with. Transferring assets to digital currency is a boon to government, wherein they cant control nor regulate it. This is a a must watch scenario for turkey in my opinion.

when trying to escape economic instability you want to move to something that is more stable than your economy. the title says Lira plummets 20%, and 20% drop is not something to push you to bitcoin and definitely not altcoins. for instance 2 days ago in less than 24 hours altcoins dropped 20%-30%! who in their right minds would choose them? the same is true about bitcoin but in a less intense scenario. bitcoin can also drop but not as hard and speculation says $6k is the bottom but still it can drop 20% (~$60).

which is why I believe what you said is happening but not as much as you would think.

[freebutcaged]

but the price is volatile and specially these days there is a chance of drop

There is always a chance of drop in Bitcoin's price, it doesn't make it unsafe to invest.

so i don't think that many people are considering bitcoin at least not as their primary investment.

They're considering to turn over their US dollars and convert them in to their local currency the Turkey's people as I have heard, they

Are patriots thus helping their country by doing this, if everyone in other countries does the same then economic sanctions would

Become ineffective. what every Turk should do is to take all of their dollars to their government and convert them back to Lira if they

Wish to support their country's economy.

wherein they cant control nor regulate it

Bitcoin is already regulated in most countries.

when trying to escape economic instability you want to move to something that is more stable than your economy

Bitcoin will never be stable, Bitcoin is a high risk high return investment. I don't think that people in Turkey are really considering to move

In Bitcoin, this is in OP's imagination but if in the coming days something big happens in trading volume on Turkey's exchanges, like

Having billions of dollars in trading pair with Bitcoin then we might believe the story.

[RottenSteel]

bitcoin isn't prohibited in Iran. the distinction is that there is no concentrated trade in Iran for individuals to exchange at so they need to utilize distributed exchanging or outside the nation ones and they have been doing that for as long as years. so this isn't new.

[nazaididuan1]

Some political things will cause Bitcoin to rise because people think it should be a safe haven!
Because of the special nature of cryptocurrencies, such as the characteristics of decentralization, it will be regarded as a hedging tool.