Recent events in Turkey has seen the Turkish Lira plummet, causing it to lose over 25% of its value against the US Dollar. Many people in Turkey have turned to Bitcoin as they fear there could be an even bigger drop during this period of uncertainty.
Why Bitcoin?
The reason people are turning to Bitcoin in these times of uncertainty is the same reason Bitcoin has become so popular – power to the people.
One of Bitcoin’s main attractions is its peer-to-peer network, meaning there is no central government or authority controlling your money. You can also store your Bitcoin (or other Cryptos) without having to trust a central authority or organisation with looking after your money.
Around 1 in 5 Turks have purchased Crypto, as trust in digital currency increases despite the Crypto market turning bearish since the start of the year. Crypto and Bitcoin in particular has been seen as a safer way to secure your money – despite the current bearish market, investors are losing faith in their local governments/banks and would rather trust their funds on a decentralised blockchain.
Cyprus as an example
In 2013 the people of Cyprus were affected by a “haircut” which saw savings taken out of their Bank accounts without their permission. The money was taken as part of a rescue package with the IMF which saw savers with over 100,000 Euros being hit (read more here).
Banks were closed for days and a daily limit on withdrawals was imposed which left many citizens unable to access the remainder of their money. People in the small European Island lost all trust in their government and the banking institution which they placed their trust and life savings.
There are many more features of Bitcoin and other Cryptos such as Ethereum which we will expand upon in future posts. Cryptos still have a long way to go in order to solve the real world problems we are currently seeing, but examples such as those in Turkey, Cyprus and Greece show just how much a big change Bitcoin and other Cryptos can have in everyday lives.
Bitcoin and Cryptos aim to avoid such circumstances as the aim is total control of your own money, meaning no banking institution or central authority can take your Crypto as they did with money being held in Cyprus.
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