So, i’m not usually a great critic of inflation and arguments from hurr durr conomics as in “the fiat system is taking away my freedums”, but there is one particular event as of right now that, similar to Venezuela, could let people turn to Bitcoin and crypto out of necessity, for the lack of an actual functioning national currency.
That event is the refusal of Erdogan and his followers that he set up the turkish central bank with to lower interest rates. Erdogan refused to lower the interest rates of the central bank as it would crowd out businesses that rely on the infusion of more money into the market.
That is done in an effort to force economic activity and the jobs that come with it.
But with the prior lowering of production output in major western economies like turkey in the pandemic, the devaluation of the turkish Lira that comes with this step will not just lead to a lower exchange price for turkish goods and services, as those will need to be produced first.
Instead, turkish production companies holding Lira will simply not have the purchasing power to buy their raw materials on the international market to even get production going. This will be particularly problematic with natural ressources often doubling and tripling in price, now that producers are buying out markets to get started again with the lift of lockdowns in western economies.
This means that not just will the turkish Lira be devaluated in relation to it’s market capitalisation, but the general output of the turkish economiy will stay low and most likely even lower in comparisson to pre-pandemic levels.
More currency in circulation, less stuff to buy in that currency. Both sides of the inflation equasion are affected. This is screaming hyperinflation.
Now, before the ban in Turkey, Bitcoin had a relatively strong distribution in turkey. It had a lot of miners and speculants looking for a quick buck. It could very well turn out that the turkish will, out of sheer nessecity will have to turn to alternative currencies and with that they will turn to Bitcoin and other crypto.
Now, i thought about trying to justify making money from the suffering of the Turkish people by speculating in Bitcoin, but i really do not feel compelled to say sorry. I simply don’t like muslims, so i’m fine with them having to buy the coins that i mined for a price that will probably ruin them because they don’t have a choice.
What i only wanted to say with that, really:
Prepare for another moonshot. A major industrialised nation is going into hyperinflation and billions of dollars worth of purchasing power of the turkish people could flow into crypto.
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