According to GWI Research, Turkey has seen a huge increase in cryptocurrency ownership as the country’s inflation rate has skyrocketed. Turkey had the largest increase in cryptocurrency ownership, with a 27.1% increase in ownership from July-September 2021 to July-September 2022, according to the survey, which saw people aged 16 to 64 years old. Argentina and the Philippines were close. close behind, with crypto ownership rates rising to 23.5% and 23.4%.
Rising inflation rates in these countries can be blamed for the rise in crypto possession. There was a sharp decline in the Turkish lira at the end of 2021, losing 44% of its value in relation to the US dollar. In early 2022, the country’s inflation rate is set to exceed 30%; By the end of the year, it stood at an astonishing 72.31%. Due to these economic considerations, the daily trading volume of cryptocurrencies in Turkey reached an average of $1.8 billion.
The use of cryptocurrencies in these countries has wide-ranging implications. More than 2.4 million Turks, or approximately 2.94% of the population, are now believed to own bitcoin. The devaluation of the Turkish lira, which affected the savings and investments of many Turkish households, has improved the environment for cryptocurrency adoption. Additionally, the Turkish population has fallen in favor of cryptocurrencies due to their simplicity of use and their perception as a hedge against inflation.
Trading is the only available option for those interested in this sector due to the lack of a regulatory framework in Turkey, which has allowed cryptocurrency trading to grow. However, regulatory adjustments are expected in the coming years as the government prepares to introduce its central bank digital currency, the digital lira, in 2023. Higher taxes and more precise regulations are predicted for cryptocurrency-related activity, yet a total ban on cryptocurrencies seems less likely.
The lack of trust in fiat money and the demand for alternative stores of value in Argentina and the Philippines have also increased the popularity of cryptocurrencies. The growing public interest in cryptocurrencies is a sign that digital assets are becoming more widely accepted and that decentralized financial systems are becoming more prevalent.
Significant trading volumes are seen on major Turkish cryptocurrency exchanges such as BtcTurk and Paribu, indicating that the growth in cryptocurrency ownership in these countries is not going unnoticed. Another sign of the growing social impact of cryptocurrencies is their growth in other industries, such as sports sponsorship and university courses.
Cryptocurrencies have become popular for those looking to keep their money safe as the global economy grapples with the aftermath of the pandemic and inflationary pressures. The increase in cryptocurrency ownership in Turkey, Argentina, and the Philippines demonstrates the growing acceptance and acceptance of cryptocurrencies as an alternative financial instrument in times of economic turmoil, even though difficulties and concerns remain.