Cryptocurrency in Turkey – The Rise and Fall of the Boom

Digital currencies are being studied by governments all over the world. The Bank of England is forming a team to investigate the possibilities. And the Australian Stock Exchange is considering applications for a cryptocurrency-based exchange-traded fund (ETF). Germany was one of the first to embrace cryptocurrencies, investing heavily in blockchain-based institutional investment applications.

Cryptocurrency is a form of decentralised digital money based on blockchain technology. There are over 5,000 different cryptocurrencies in operation, according to CoinLor. The most popular models, Bitcoin and Ethereum, may be familiar to you.

The majority of people are unaware of cryptocurrencies. Many people have never heard of cryptocurrencies, and it can be challenging for beginners to grasp since it is a risky investment. As a result, the majority of people stop investing in it. As a result, many online cryptocurrency exchange development platforms have flooded the market, claiming to be able to help people understand cryptocurrencies and encourage them to invest in them. Since it has the potential to generate a large profit.

Not only will you purchase currencies with cryptocurrencies, but you can also buy products and services. Despite this, many people invest in cryptocurrencies similarly to stocks or precious metals. While cryptocurrency is a novel and exciting asset class, investing in it can be risky due to the need for thorough analysis to fully understand how each system works.

Boom of Cryptocurrency in Turkey

Many people were concerned about currency depreciation as governments and central banks around the world tried to fight the catastrophic economic damage caused by the Covid-19 pandemic by opening the stimulus taps to gush out trillions. The use of gold as a store of wealth has become one of the go-to safe havens in the sense of low trust in fiat money. But what happened instead was the massive acceptance of cryptocurrencies like Bitcoin, which started to act as a digital reserve asset, earning it the moniker “digital gold” as its value skyrocketed (one Bitcoin is currently worth $60,506).

“I believe that Bitcoin is the new gold,” said public servant Mahmut Akdemir, who claims that market deflation during the pandemic has boosted demand for cryptocurrencies in Turkey. Akdemir, 38, told TRT World that he and his wife joined the crypto market a month ago after discovering that many people in their area were profiting from it.

Between March 20 and 24, $2.8 billion in cryptocurrency was exchanged, compared to $12 million the year before. Trading volumes reached $26 billion between the beginning of February and March 24, with a peak on the weekend of Agbal’s departure. The number of searches for Bitcoin reached an all-time high, according to Google Trends, with a 566 percent increase in the hours following news of the lira’s depreciation. Meanwhile, gold prospecting had slowed to a halt.

In preparation for next year’s UEFA European Championship, Turkey’s biggest crypto exchange BtcTurk, which has over 1 million users trading on the site, has become a big sponsor of both the Turkish men’s and women’s national teams.

Turkey’s Cryptocurrency Boom Turns to Bust

In Turkey, cryptocurrency enthusiasts are having a harsh reality check, with two exchanges crashing in less than a week. After failing to pay clients and fleeing the world. Turkey has launched an international manhunt for the founder of Thodex, one of the country’s largest cryptocurrency exchanges. A second exchange, Vebitcoin, went bankrupt a few days later, and its CEO was reportedly arrested.

Vebitcoin, a cryptocurrency exchange located in Mugla, in the southwest, has ceased operations due to worsening financial conditions. According to Anadolu, Chief Executive Officer Ilker Bas and three other workers were detained. Vebitcoin’s accounts were frozen and an investigation was launched by the Financial Crimes Investigation Board.

According to a lawyer representing the company’s founders, Thodex had about 390,000 users. According to CoinGecko, which monitors the details, the volume was $744 million as of Wednesday. Vebitcoin’s daily amount was equivalent to $60 million.

The exchanges were part of the cryptocurrency boom, which attracted legions of Turks looking for a way to shield their savings from rising inflation and a volatile currency. In March, inflation reached 16.2%, more than three times the central bank’s goal. The risks of a poorly controlled crypto market have never been better demonstrated than by the events unfolding in the midst of a Bitcoin crash. Turkish officials are now pushing for swift market control. With the central bank prohibiting the use of cryptocurrencies as a means of payment.

On the other hand, there is reason to be optimistic for cryptocurrency investors. 3iQ, a Canadian company, plans to list its Bitcoin ETF in Dubai. It will be the first cryptocurrency fund to go public in the Middle East as a result of the step.

After two local exchanges collapsed in a matter of days, Turkey is preparing to control its cryptocurrency sector. Following the collapse of the Thodex and Vebitcoin exchanges last week. The government is planning to establish a central custodian bank to reduce counterparty risk. According to a senior official familiar with the plans. Authorities are also considering a capital threshold for exchanges and education standards for exchange executives. According to the official, who spoke on the condition of anonymity because the proposals haven’t been finalised yet.

Thousands of Turkish people have turned to white label cryptocurrency to shield their assets from market volatility and a weak currency. According to CoinGecko.com, which monitors data on price, volume, and market value on crypto markets. The regular volume of trade in Turkish crypto markets over the past 24 hours was about $1.6 billion.

Bitcoin and other altcoin market is crashing and showing a dip, according to experts this is the best time to buy and hold.

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