Turkey’s annual inflation rate has reached its highest level in 24 years, standing at 78.62%. The figure was released by the Turkish Statistical Institute, with a monthly increase of 4.95%.
The rising cost of energy and the weakening Turkish lira are two of the factors that have contributed to the high inflation rate. Other countries have experienced similar surges in inflation rates, with the European Central Bank poised to raise interest rates for the first time in 11 years.
While the lira has been falling, BTC volume on LocalBitcoins in the region has increased significantly. BTC peer-to-peer trade volumes increased dramatically in the first and second quarters of 2022 as compared to the fourth quarter of 2021.
LocalBitcoins trading volume climbed by 51% in the first quarter of 2022 compared to the fourth quarter of 2021, and by 40% in the second quarter of 2022.
These are significant gains, indicating that people are turning to cryptocurrencies to secure their financial positions.
In the middle of all of this economic turbulence, Turkey’s government is resorting to a variety of tactics. Nonetheless, all demographics are flocking to cryptocurrency, and neither age nor gender influences the decision to invest in cryptocurrency.
Recep Tayyip Erdoan, Turkey’s president, has made his dislike for interest rate hikes, dubbing them the “mother of all evil.” The Turkish lira has fallen as a result, and the country may have to take dramatic measures to address the problem.
Turkey banned cryptocurrency payments in 2021, but this does not appear to have deterred citizens from investing in it only as an asset class. If the struggle continues, it is more probable that crypto investments will increase. Individuals have frequently turned to cryptocurrency as a hedge against inflation, though that argument appears to be fading.
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