Fall of fiat|Rise of Bitcoin

[pawanjain]

Lira is the fiat currency of Turkey which is facing a sharp decline in it's value. The rise of inflation in Turkey has dumped the value of Lira.
With an inflation rate of about 20% - 25% the price of Lira has declined about 45% this year with a peak dump of about 20% in a week and 15% in a day.
Those numbers are high enough and causing a panic in the market. The media also say that it might be at the edge of hyperinflation in Turkey.

This has caused a rise in the price of bitcoin in Turkey. People are opting to use bitcoin when the fiat currency is falling sharply.
The inflation has influenced so much that the president of Turkey Recep Tayyip Erdoğan has announced a crypto law that will soon be shared with the Parliament.
This means crypto will soon be legalized in Turkey. I think it's a good decision and will help Turkey fight inflation well.

Sources:
Turkey’s crypto law is ready for parliament, President Erdoğan confirms
Turkey’s Inflation Is An Example Of Why We Need Bitcoin

[1715197636]

1715197636

[1715197636]

1715197636

[1715197636]

1715197636

[1715197636]

1715197636

[1715197636]

1715197636

[hatshepsut93]

Cointelegraph is garbage, don't use it as your source for news. Here's a better report. Turkey is not adopting Bitcoin like El Salvador did, it's not even close. They actually already banned its use as a currency, and the upcoming law just increases regulations to prevent exit scams by large exchanges like the one that happened recently, at least according to the lawmakers.

Also, your stupid Cointelegraph said that Turkish Lira has dropped in value recently, but in fact it made a huge comeback as it went from $0.06 to $0.094

[tranthidung]

Fiats always fall in all nations because governments have common characteristics. They are greedy to support their power and they approve to print more fiats to support economy and satisfy short term needs of citizens.

In long run, they cause inflation and since pandemic we have hyper inflation. I don't believe people who received airdropped money during pandemic don't feel happy in a moment. They just don't realize that something bad is coming in long run.

[UmerIdrees]

Also, your stupid Cointelegraph said that Turkish Lira has dropped in value recently, but in fact it made a huge comeback as it went from $0.06 to $0.094

Even if Turkish Lira drop in value this will have not have any effect on bitcoin price. The only thing which can determine the price of bitcoin is the dollar value.

The value of dollar is increasing from May 2021, and that's one of the reason we are having a selling pressure on bitcoin.

[Charles-Tim]

Also, your stupid Cointelegraph said that Turkish Lira has dropped in value recently, but in fact it made a huge comeback as it went from $0.06 to $0.094

When even the USD would depreciate over time as the United State government will manipulate it's price due to one reason or the other. Fiats are depreciative in general. You are using fiat to compare fiat. Also we like it or not, be it Lira increase in value lately or not, its value over long period of time would not worth what its price is today, it would depreciate.

The only thing which can determine the price of bitcoin is the dollar value.

No. You can use the fiat of your country to determine the price of bitcoin, not necessarily USD.

[pawanjain]

Cointelegraph is garbage, don't use it as your source for news. Here's a better report. Turkey is not adopting Bitcoin like El Salvador did, it's not even close. They actually already banned its use as a currency, and the upcoming law just increases regulations to prevent exit scams by large exchanges like the one that happened recently, at least according to the lawmakers.

Also, your stupid Cointelegraph said that Turkish Lira has dropped in value recently, but in fact it made a huge comeback as it went from $0.06 to $0.094

Which source do you always use for getting latest crypto news ? It might help us getting the right news at the right time.
Wow, I didn't knew they banned the use of it as a currency. But we can still see so many people buying crypto in turkey.
Currently bitcoin is at a premium price in turkey with a price of $52500 in Turkish Lira.

[UmerIdrees]

The only thing which can determine the price of bitcoin is the dollar value.

No. You can use the fiat of your country to determine the price of bitcoin, not necessarily USD.

I live in Pakistan and we have the currency PKR. Our currency is very much devalued against dollar in last two month but the bitcoin prices are not increasing with this ratio. This means that only the global currency like US dollar only has an effect on the bitcoin prices.
You can share your currency and we can further compare it to see if this holds true for other currencies also.

[Charles-Tim]

Which source do you always use for getting latest crypto news ? It might help us getting the right news at the right time.

I have used few crypto news sites, none of them is perfect. They can be better than one another, but none is perfect. That is why it is good at times to use two or more different sources to get right information. When I started to post on this forum was when I knew news sites are not perfect at all. It is we that should just be very updated and not welcome all we saw on news sites.

I live in Pakistan and we have the currency PKR. Our currency is very much devalued against dollar in last two month but the bitcoin prices are not increasing with this ratio.

I still did not understand this. Try to do the calculation and see if it is correct. I have preferred to use the USD but I noticed I can as well use naira if I want to.

Some people in some countries prefer to use their fiat, they convert their local fiat to bitcoin and bitcoin to fiat. If this is what they are exposed to, they can prefer to relate bitcoin to their local fiat directly.

But the most important is that fiat generally are centrally controlled and highly depreciative. Even if USD is more accurate or widely used by people, this does not change the fact that fiat are depreciative over long term.

[alpamar99]

Even if you look closely, their value always falls, even in almost all countries, I think because if you look at it from year to year, the existence of fiat always experiences a decline in funds, they lose their electability over time.
on the other hand, I don't like the sources you include because as long as I've seen Cointelegraph they always exaggerate in the news.
For the medium to low, the fiat looks very good but in the longer term I feel they are getting destroyed

[Gyfts]

...

Currency index isn't the complete picture, because even USD is having too much trouble with inflation and I'm not very confident the projections are accurate either in terms of how long it'll last. Easily could go into 2023, and economic projections for GDP growth are being slashed. Keep in mind, the US economy was supposed to have unusually high GDP growth compared to previous years because the pandemic in 2020 caused low economic growth. So mediocre growth would be pretty devastating, and that's what we've seen.

Inflation rate is the only thing that matters, converting your currency into another highly inflating currency is abandoning a sinking ship for another.

[Theones]

Cointelegraph is garbage, don't use it as your source for news. Here's a better report. Turkey is not adopting Bitcoin like El Salvador did, it's not even close. They actually already banned its use as a currency, and the upcoming law just increases regulations to prevent exit scams by large exchanges like the one that happened recently, at least according to the lawmakers.

Also, your stupid Cointelegraph said that Turkish Lira has dropped in value recently, but in fact it made a huge comeback as it went from $0.06 to $0.094

Turkish lira 4 days back made a historic come back against usd. I though OP will refer that but instead he made a strange argument that lira is going down. Please follow Reuters credible report on Turkish lira.
https://www.reuters.com/markets/currencies/turkish-lira-charges-back-after-erdogans-anti-dollarization-plan-2021-12-21/

Big powers are in no mood of adopting btc as legal tender. Only the so called worlds coolest dictator is buying bitcoin at peak price of 50k$.

[Leviathan.007]

Turkey doesn't have a stable ruler at all one day they are bitcoin-friendly and the other day they will try to make it stop, not just about economics but about everything we cannot trust they say about bitcoin and cryptocurrencies, Since Lira is becoming worthless every day and this country is losing economic power they will try to do anything to stand against the inflation rate in country, so showing some smile to bitcoin and bitcoiners will make people so stay there in Turkey nad spend their bitcoins instead of leaving Turkey to some other country like Singapur where people have more economic freedom that's how they want to hold the money inside their country by doing this.

[magneto]

Turkey's economy is a mess.

Citizens there should really wake up to this centralized manipulation. Having a stable, immutable currency supply should be a basic human right.

I wouldn't be surprised if p2p BTC transaction volumes start increasing in Turkey in the upcoming months, honestly.

[JohnBitCo]

The inflation has influenced so much that the president of Turkey Recep Tayyip Erdoğan has announced a crypto law that will soon be shared with the Parliament.
This means crypto will soon be legalized in Turkey. I think it's a good decision and will help Turkey fight inflation well.

This is false.
No law is needed to fight inflation. The president should stop printing the currency, that'll do it.

Why will the presidents and the prime ministers of the world stop printing money? It's free money for them and who do not want free money?
Also by printing more, they give stimulus checks (free money) to people and purpose may not be to help the people, but to gain sympathy and popularity to be elected for the next elections.

[Jawhead999]

Why will the presidents and the prime ministers of the world stop printing money? It's free money for them and who do not want free money?
Also by printing more, they give stimulus checks (free money) to people and purpose may not be to help the people, but to gain sympathy and popularity to be elected for the next elections.

Yep, also take a look of the Coronavirus case on Turkey... it's already on top 6 of course he will need more money to distribute on pharmacy, buy vaccines, and give donation to the poor to live. Even we know if printing money stopped will make the fiat value remain or higher, but government wouldn't care of it.

This is why Bitcoin solve the inflation of fiat in the long run.

Anyway even the county has hyperinflation, it doesn't push Bitcoin to be accepted on that countries because they still need to buy Bitcoin with their worthless fiat. Moreover the countries banned Bitcoin, almost impossible Bitcoin to be legal tender except many countries already accept it.

[Ararbermas]

Real fiat is too slow reason many people take the advantage to have bitcoin on their pocket than traditional money. The inflation is different when it comes both assets. So i wouldn't be surprised if bitcoin really becomes legal tender all over the world because obviously bitcoin gradually getting more attention than other asset especially when it comes investment.

[pooya87]

People are opting to use bitcoin when the fiat currency is falling sharply.
Erdoğan has announced a crypto law that will soon be shared with the Parliament.
This means crypto will soon be legalized in Turkey.

The first sentence suggests that the last one may not be true. You see countries that have a messy economy where their fiat is dumping hard aren't so friendly towards bitcoin specially if their people are dumping their fiat to buy bitcoin. In other words they may actually pass a limiting law (high taxes, or maybe even a ban) on bitcoin puchases.

I live in Pakistan and we have the currency PKR. Our currency is very much devalued against dollar in last two month but the bitcoin prices are not increasing with this ratio. This means that only the global currency like US dollar only has an effect on the bitcoin prices.
You can share your currency and we can further compare it to see if this holds true for other currencies also.

All fiat currencies have been dumping for as long as they have existed. Some faster and harder than others but there is no exception to this rule. USD is dumping too but in order to see its dump you should see the price of things. For example groceries, utility bills, rent, ... in US which is all rising which clearly shows that USD is also dumping.
So the only reason why PKR devalued against USD is simply because PKR at some stage dumped faster than USD.

[michellee]

The inflation has influenced so much that the president of Turkey Recep Tayyip Erdoğan has announced a crypto law that will soon be shared with the Parliament.
This means crypto will soon be legalized in Turkey. I think it's a good decision and will help Turkey fight inflation well.

This is false.
No law is needed to fight inflation. The president should stop printing the currency, that'll do it.

Why will the presidents and the prime ministers of the world stop printing money? It's free money for them and who do not want free money?
Also by printing more, they give stimulus checks (free money) to people and purpose may not be to help the people, but to gain sympathy and popularity to be elected for the next elections.

Besides that, the government can convince their people to protect their own fiat money and everything is under control so their people do not need to worry. Although inflation still happens, the government is still getting trust from their people so people will not complain about why that is happening because the government will have their "right" reason to explain to their people. But if crypto can be legal in Turkey, that means crypto will get more support from those people and hopefully, it will give more chances for crypto to be stronger in the future.

[DapanasFruit]

Cointelegraph is garbage, don't use it as your source for news. Here's a better report. Turkey is not adopting Bitcoin like El Salvador did, it's not even close. They actually already banned its use as a currency, and the upcoming law just increases regulations to prevent exit scams by large exchanges like the one that happened recently, at least according to the lawmakers. Also, your stupid Cointelegraph said that Turkish Lira has dropped in value recently, but in fact it made a huge comeback as it went from $0.06 to $0.094

Thanks for correcting the original post here. In most cases, a government that is inclined to be authoritative will never easily cede its power to Bitcoin and that is why am a little bit - and supposedly happy - that Turkey is adopting cryptocurrency. But to my dismay, this is just another fake news. anyway, am sad for the people of Turkey because I understand that is actually a country that is making good in its economy years back but is now facing many challenges...may 2022 be bringing more stability to its economy and be bringing more wisdom to people manning the government.

[romero121]

Real fiat is too slow reason many people take the advantage to have bitcoin on their pocket than traditional money. The inflation is different when it comes both assets. So i wouldn't be surprised if bitcoin really becomes legal tender all over the world because obviously bitcoin gradually getting more attention than other asset especially when it comes investment.

Real fiat has got slowdown due to more financial destruction happening around the globe. In recent days covid-19 had made a big blow in the economic progress. By the time bitcoin showed its highest growth through its unique technology that is against the traditional fiat inflation. For the same we can't term bitcoin to take over the place of fiat. One country have made it a legal tender whereas majority have made it an investment asset. So, bitcoin to be a legal tender around the world won't happen in the short.