Turkish Lira vs. Bitcoin
As Bloomberg reports, the currency crisis in Turkey makes the Turkish lira (TYR) fall by 45% this year. Turkey’s currency continues to weaken against the dollar. However, if we look at the charts, bitcoin also didn’t have a good start of the year. At the beginning of the year BTC cost around $15 000 while right now, it cost around $6300, it is more than 55% price drop, while TYR/USD price changed from 3,75 to 7,04 at press time.
“Bitcoin is too volatile to be a currency.”
Turkish lira down 43% YTD; 21% so far today.
Argentine Peso down 36% YTD. pic.twitter.com/jFsrnHcoO0
— Joe McCann (@joemccann) 10 sierpnia 2018
It is said that Bitcoin will never become a real currency of the world because it is too unstable and used only for speculation on the market. However, in the case of the Turkish lira, which has fallen by 20% in one day, it is putting Bitcoin in a favorable light – it is becoming more stable than the Turkish national currency. Bitcoin’s volatility hinders its acceptance as a source of payment, making it impossible to act as a reliable resource of value.
In Venezuela, Bitcoin has become very popular, mainly because of the massive weakening of the Venezuelan Bolivar.
The Turkish Lira is currently the worst emerging market currency in 2018. Its value decreased by around 40% since the beginning of 2018. The situation may resemble the initial phases of the Venezuelan currency crisis.
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