The interest in Bitcoin in Turkey

[CLS63]

In Turkey, the cryptocurrency usage has been getting more common in the recent years. While many countries in the world have been tussling with high inflation this situation has been happening much more dramatically in Turkey. Markets didn't welcome the president Erdogan's applying pressure over the Central Bank and decreasing interests. And the official inflation rate has been published as 78.6% in Turkey. However the academicians who are doing an independent research are thinking that the real inflation rate in Turkey is 175.55%.

https://twitter.com/ENAGRUP/status/1543841563935219712?s=20&t=G41fycRj4g3t7a_Ije4P6A

In a country that has this much high inflation rate, people have to make investments to be able to keep the worth of their money. And in Turkey that there is a high population of young people, investments into cryptocurrencies have been quite high in the recent years. For example, local cryptocurrency exchanges have grown big that they can even sponsor the national team comfortably from now on.



https://www.btcturk.com/bilgi-platformu/btcturk-becomes-sponsor-of-womens-and-mens-national-teams/

People are talking about Bitcoin everywhere in daily life from now on. And the number of businesses that are accepting Bitcoin is increasing in Turkey day by day.

The goverment of Turkey stated that they were looking at cryptocurrencies positively in their statements in the past. However the president Erdogan said in the statement he made on May 19, 2022 that he wasn't leaning towards cryptocurrencies. And he added that there was going to be some actions to be taken about this.

What do you think about the bigger interest from the people of a country that has a big inflation rate? Do you think that it stems from the desire that people want to keep the values of things they have? Or is it easier to take risks for these people in countries like this?

[BlackHatCoiner]

What do you think about the bigger interest from the people of a country that has a big inflation rate?

What could I say? They must have observed something going wrong with their economy, their national currency is seriously devaluated. There's definitely a decent number of Turkish who're obsessed with using a neutral currency that does not represent a country, whose inflation schedule is programmed.

Do you think that it stems from the desire that people want to keep the values of things they have?

I don't understand what you mean here.

Or is it easier to take risks for these people in countries like this?

It is easier to distrust the word of politicians, in cases like Turkey.

[CLS63]

Do you think that it stems from the desire that people want to keep the values of things they have?

I don't understand what you mean here.

I wanted to ask this by saying that: Does the reason why people are going towards cryptocurrencies stem from the desire to preserve their asset against high inflation? Or does it stem from the effort to earn high amount of income?

Or is it easier to take risks for these people in countries like this?

It is easier to distrust the word of politicians, in cases like Turkey.

Even though the banking system in Turkey has been built on solid basis, because of the recent economy policies some people prefer to preserve their money in their homes rather than banks.

[Lucius]

People are talking about Bitcoin everywhere in daily life from now on. And the number of businesses that are accepting Bitcoin is increasing in Turkey day by day.

The news from last year was that Turkey banned payments with cryptocurrencies, has anything changed regarding that law?

The Central Bank of the Republic of Turkey ("Central Bank") recently issued a new regulation which prohibits the use of crypto assets as payments for transactions. The Regulation Prohibiting the Use of Crypto Assets for Payments was published on the Official Gazette dated April 16, 2021 and becomes effective as of April 30, 2021.

What do you think about the bigger interest from the people of a country that has a big inflation rate? Do you think that it stems from the desire that people want to keep the values of things they have? Or is it easier to take risks for these people in countries like this?

There is no great mystery here, people are just looking for a way to try to outsmart inflation in any way, and Bitcoin is offered as an alternative. Regardless of its volatility, it is still a much better option for some than what the Turkish lira currently offers. Of course, it's always easier to take a risk if you have no other choice, but for those who believe in Bitcoin, it doesn't matter if they live in Turkey, the US or India - each of them believes in Bitcoin more than in their national currency.

[hugeblack]

Personally, I do not like a generalization that is not based on a study or something that supports it. Just because people are talking about Bitcoin, it does not mean that they will invest. This is if we define people and how much they are compared to the percentage of the population and the percentage to the GDP.
Inflation is a problem in Turkey, Bitcoin is one of the solutions, but not the only solution and not everyone will use it. This does not negate that growth in Turkey and around the world is an upward function.

[jackg]

Bitcoin might be a solution if faced with 50%+ inflation but I still think the value fluctuations are problematic with it - they'll probably be less likely to panic sell and more likely to hold though given how their native currency loses value too. It might be disliked by their president because stablecoins can pay a good interest to people too (and in usd).

I've heard quite a lot of proposals that have come out since the inflation rate hit and stayed around 50% for a few years.

One of them was to top up accounts with the amount the currency had inflated so the value remains the same (this would worsen inflation and those on lower domestic salaries - unless they rise more than inflation).

Apparently a lot of Turkish bank accounts also accept dollars to be deposited (but don't offer interest on them). It's an odd situation to see an economy manage to survive on such high inflation rates and do well - it'd be better if they educated people on how to invest in companies (either on a national level or and inter atonal one) as I think they'd see a lot of demand for their currency over the long term on the forex market too (maybe initially a drop further in the value of their currency though).

[yhiaali3]

175% Inflation is a very high number!!! I thought that Erdogan's economic policies had greatly improved the Turkish economy, as the government propaganda says, I hear Erdogan and his party are very popular in Turkey, but I am not surprised by this because I know that governments lie constantly in order to improve their reputation abroad.
In any case, it is normal for people to turn towards Bitcoin as a store of value due to the very high inflation rate, people do not want to lose their money by putting it in fiat that loses its value every day, but of course this will not be liked by the Turkish government and may put strict laws towards cryptocurrencies.

[naira]

Turkey is a country that is currently hit by inflation, I have heard about their news everywhere. If I'm not mistaken Turkey's financial system is going against the west. Adhering to an Erdoganomic economic system that does not refer to an increase in interest rates. As a result, they experienced 2x greater inflation. Correct me if I'm wrong, when Turkey's inflation continues to swell there is a positive side where Turkish stock prices soar while western stocks experience drastic declines when interest rate hikes are announced. One of them is Turkey BIST100 which is up by 30%.

https://www.investing.com/indices/ise-100-30

[Leviathan.007]

Regarding Turkey and bitcoin interest in this country, I have som a few words to say, 2-3 years when I visited this country there were many bitcoiners there and even when I came to a coffeeshop in Istanbul I heard lots of people were talking about bitcoin and the other cryptocurrencies but they were trying to keep it secure to protect themselves from the government investigations hardly. I like that they like bitcoin but due to the situation of the country they had some problems, at least that is what I saw. On the other hand, decreasing the value of their fiat currency because of the inflation rate increases the interest in this market.

[Reid]

People are talking about Bitcoin everywhere in daily life from now on. And the number of businesses that are accepting Bitcoin is increasing in Turkey day by day.

In terms of percentage, how many people is this? Was there a survey about how many are open to this idea?

The goverment of Turkey stated that they were looking at cryptocurrencies positively in their statements in the past. However the president Erdogan said in the statement he made on May 19, 2022 that he wasn't leaning towards cryptocurrencies. And he added that there was going to be some actions to be taken about this.

A conflict. If the people are trying to use a new option while the government is pursuing something else. This will not be good.
I have heard a lot of news about the unstoppable inflation in Turkey even before the pandemic hits. Vloggers seems to have floated that issue especially those who make food contents.

What do you think about the bigger interest from the people of a country that has a big inflation rate? Do you think that it stems from the desire that people want to keep the values of things they have? Or is it easier to take risks for these people in countries like this?

That's one, keep the value.
Even if they are avoiding the risk, it's not like they have a lot of options but to force themselves in buying currencies that won't easily depreciate.

[inthelongrun]

I think it is the same exchange that sponsored a soccer team in Turkey some years ago. They indeed grew bigger and bigger.   

I read yesterday that Turkey is number one or second with the highest inflation. I am surprised, to be honest. I knew Lira continues to slide down since the 2016 failed coup but 78.6% is very very high. Is the Turkish government printing a lot of money too? I think Turkey is one of few countries that is benefitting from the current war in Ukraine. They are exporting a lot of weapons for that war. West Europe's winter is coming and they will be needing more supplies of gas from Azerbaijan where Turkey gets passage fees. More Russian businesses are also in Turkey and who knows maybe laundering money too.

The news from last year was that Turkey banned payments with cryptocurrencies, has anything changed regarding that law?

The Central Bank of the Republic of Turkey ("Central Bank") recently issued a new regulation which prohibits the use of crypto assets as payments for transactions. The Regulation Prohibiting the Use of Crypto Assets for Payments was published on the Official Gazette dated April 16, 2021 and becomes effective as of April 30, 2021.

I am not from Turkey but I read a lot of news articles this year and the Turkish government seemed positive about cryptocurrencies. I believe it wanted to attract many exchanges to do business in their country where the government can impose taxes. And if crypto is illegal then BtcTurk cannot sponsor its country's national team? Maybe it is illegal to use it as a form of payment only.     

[Lucius]

I am not from Turkey but I read a lot of news articles this year and the Turkish government seemed positive about cryptocurrencies. I believe it wanted to attract many exchanges to do business in their country where the government can impose taxes. And if crypto is illegal then BtcTurk cannot sponsor its country's national team? Maybe it is illegal to use it as a form of payment only.     

It is possible that the OP is referring to businesses that are exclusively related to crypto trading, because as far as I know, the law from last year is still in force. Companies that provide crypto trading services can sponsor anyone as long as they make payments in fiat and not in cryptocurrencies.

I'll just repeat that no country can be considered crypto-friendly if it bans Bitcoin as a means of payment, although most people don't consider it too negative considering that their reasons for owning Bitcoin are far from using it as a currency.

[Ucy]

Ofcourse, when inflation is hitting hard there should be deliberate policy to encourage the production of scarce goods and services that are causing the inflation, which should help drive the inflation down... Decreasing interest rate for producers of scarce goods/services esp rather than for consumers is one of the most important ways to encourage production and drive down inflation. In this case, people from countries that earn Bitcoin either by selling goods or services, or from its price appreciation would also help drive inflation down as long as they use their earnings more for production. I actually prefer a mutual or symbiotic relationship between Bitcoin and world's economies, hence the need to make sure things are not too difficult for producers in Bitcoin world... Bitcoin also benefits when producers are doing well. It's important to start building a safe system that grooms independent producers & help them to thrive on some sort of decentralized Bitcoin economy to benefit their economies and Bitcoin

[CLS63]

The news from last year was that Turkey banned payments with cryptocurrencies, has anything changed regarding that law?

The law you mentioned is still running now. However this situation is tying the hands of big companies more. For example, the possibility of coming across cafes and restaurants that are accepting payments with Bitcoin on the streets is not low at all.

175% Inflation is a very high number!!! I thought that Erdogan's economic policies had greatly improved the Turkish economy, as the government propaganda says, I hear Erdogan and his party are very popular in Turkey, but I am not surprised by this because I know that governments lie constantly in order to improve their reputation abroad.

Since November 2002, Erdogan and his party have been in power. The government is controlling the media completely as you can also assume. It has been all over the news that Turkey have got much stronger for the recent 20 years. And it has been added that the Europe and the USA are attacking the Turkish economy to prevent this buildup. There are nearly 10 months left for the elections in Turkey. After twenty years Erdogan seems behind his opponents according to surveys for the first time.

Apparently a lot of Turkish bank accounts also accept dollars to be deposited (but don't offer interest on them).

In fact Turkish banks are giving interests for dollar investments. However some people are still preferring to keep their money in their homes instead of banks.

In terms of percentage, how many people is this? Was there a survey about how many are open to this idea?

I don't have any information about this topic unfortunately.

I am not from Turkey but I read a lot of news articles this year and the Turkish government seemed positive about cryptocurrencies. I believe it wanted to attract many exchanges to do business in their country where the government can impose taxes. And if crypto is illegal then BtcTurk cannot sponsor its country's national team? Maybe it is illegal to use it as a form of payment only.      

As Lucius said, it is allowed to make investments into cryptocurrencies in the country now. However it is forbidden to make payments by cryptocurrencies. For example, you can buy Bitcoin from the exchange that is the sponsor of the national team and keep it. However you can't make the payment for your rent by using it legally.

[Cryptodebjoe]

Some people are seeing the last year ban of crypto in Turkey as a wrong signal for crypto investment but we should know that this is in no way affecting them from investing in cryptocurrencies because as it is they can leverage on crypto to achieve 2 things viz; they can either get into crypto to secure their assets knowing that its safer or they can also go into crypto currency as an investment. the current slump in crypto market may seem discouraging but its assurance is far better than their 24 years of continous economic downturn or inflation.
 

[fiulpro]

Risk taking is never a good idea especially in any country but isn't it all just the same? At the end of the day people play bets if the government will crash or not, the Russian rubles crashed like nothing and at the end of the day it also was stronger than anything as well, did anyone know it was going to happen ? Can we predict anything, anything at all?
I think no, and that is why we must understand the fact that sooner or later it would be essential to integrate cryptocurrencies, since they can provide an individual buffer system as well, even if the government does not accept that then also they would be dealing with cryptocurrencies because it cannot be stopped to be honest. Therefore it is good that the government might try and integrate it. But then again the situation does not seem VERY hopeful.

[Lucius]

The law you mentioned is still running now. However this situation is tying the hands of big companies more. For example, the possibility of coming across cafes and restaurants that are accepting payments with Bitcoin on the streets is not low at all.

This is interesting information, because I thought that Turkey is not a country where laws are not respected and that the punishments for those who do not follow them are very severe. Is it possible that the law then exists, but is not actually implemented, especially when you mention cafes and restaurants? I know that in my country there are state inspections in the form of tax inspections that visit catering facilities and cafes and check everything that can be checked - and apart from fines, the facilities can also be temporarily closed.

If a restaurant in Turkey accepts Bitcoin as a means of payment, then it must do so in a way to avoid paying taxes, although people are obviously very resourceful and know how to outwit the law.

[Flexystar]

Though I wouldn’t mix up bitcoin and a particular countries inflation, in case of bitcoin as whole is very stable.  I am not talking about bitcoin and its USD value or neither Turkish currency but I am speaking about bitcoin and its own decentralised economy over blockchain. Its independent and there is no harm if Turkishian is making bitcoin as legal tender. Bitcoin will keep up its value of transaction since market depth is rising day by day and it wont stop.

Bitcoin is not USD and it gets powered up with the help of all countries bitcoin users. So I would say Turkey isn’t doing wrong it should keep up the legal usage of bitcoin.

[suzanne5223]

The goverment of Turkey stated that they were looking at cryptocurrencies positively in their statements in the past. However the president Erdogan said in the statement he made on May 19, 2022 that he wasn't leaning towards cryptocurrencies. And he added that there was going to be some actions to be taken about this.

I believe the major source of the problem we have in the world today is our leaders because they are not making the required decision with steps. The people see cryptocurrency as a way out of the inflation the world is experiencing instead of them supporting the movement and creating a platform that will make mainstream they are saying another thing and wasting the country's resources on something that will create more problems.

[CLS63]

The law you mentioned is still running now. However this situation is tying the hands of big companies more. For example, the possibility of coming across cafes and restaurants that are accepting payments with Bitcoin on the streets is not low at all.

This is interesting information, because I thought that Turkey is not a country where laws are not respected and that the punishments for those who do not follow them are very severe. Is it possible that the law then exists, but is not actually implemented, especially when you mention cafes and restaurants? I know that in my country there are state inspections in the form of tax inspections that visit catering facilities and cafes and check everything that can be checked - and apart from fines, the facilities can also be temporarily closed.

If a restaurant in Turkey accepts Bitcoin as a means of payment, then it must do so in a way to avoid paying taxes, although people are obviously very resourceful and know how to outwit the law.

In fact some things are overlooked by the goverment as there are less than 10 months left for the elections in Turkey. Most of cafes and restaurants don't give any receipt unless you want it particularly (Except touristic areas and big businesses). I think that these topics are going to be put in order more after the elections. Therefore I don't think that the main goal of businesses that are accepting payments by cryptocurrencies is escaping taxes. They are only trying to get ahead of their opponents by making their businesses different.