The Turkish Lira value took a huge hit today, bringing the currency down 13% for the day and more than 45% for the year.
Fiat Vs. Bitcoin
Today the value of the Turkish Lira sank almost 16% before slightly retracing to 0.155 TRY/USD, currently a 13% loss for the day.
This brings the value of the Turkish Lira down more than 45% from this time one year ago.
Bitcoin enthusiasts took to Reddit to claim another victory in its performance against national fiat currencies, with one user claiming “Holding Bitcoin is less risky than holding Lira.”
Many investors who are new to cryptocurrency may argue that statement is not true because Bitcoin is technically down nearly 70% on the year to date. The real focus, however, should be on the larger picture.
Looking at the price of Bitcoin $6228.40 +0.26% over the course of the past year, we can see it gained just under 40% value. Even in a large market correction like the one we are currently seeing, Bitcoin continues to outperform yet another national fiat currency.
Where To Turn?
It was announced today that the United States would be doubling its tariffs on importing Turkish steel and aluminum. This move prompted investors to trade their Lira for stronger currencies like the US Dollar or Japanese Yen, and it also seems that many went the way of changing Lira into Bitcoin.
Turkish Bitcoin exchanges are reporting huge volume increases over the past day. Turkey’s largest exchange Koinim is reporting a 63% increases in Bitcoin volume, while exchanges like BTCTurk and Paribu are reporting increases of 35% and 100% respectively.
Trust in fiat currency is getting to be a large uncertainty in most parts of the world. Venezuela is currently in a similar situation seeing cryptocurrency volumes surge amid the hyperinflation of the Bolivar.
The future for fiat is not looking any brighter, as worldwide trade wars loom over us and economic crises are causing governments to inflate national currencies to nonviable levels.
These scenarios are occurring at an increasing rate, and they beg the question — will more investors start turning to Bitcoin in the near future as more and more national currencies tank?