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Binance Research conducted a study on Turkey and found that the cryptocurrency market is thriving in the country, with 2 out of every 5 people owning cryptocurrency. Turkey has become the fourth-largest country in terms of cryptocurrency purchases this year, but the active market may be a result of severe and malignant inflation in the local economy.
**Conclusion:**
**Nearly Half Adoption Rate:** Cryptocurrency adoption in Turkey is relatively high compared to other countries, with approximately 40% of the population having purchased cryptocurrency, ranking fourth globally in terms of trading volume.
**Large Lira Trading Volume:** The Turkish lira has become Binance's largest fiat trading pair, constituting 75% of the total fiat trading volume.
**Severe Inflation in Turkey:** Since the outbreak of the pandemic, Turkey's Consumer Price Index (CPI) has averaged between 40% and 80%, maintaining a high inflation rate.
**Vibrant Cryptocurrency Market in Turkey:**
**40% Adoption Rate:** Cryptocurrency adoption in Turkey is notably high, growing 250% in the past three years, with approximately 40% of the population having purchased cryptocurrency. Cryptocurrency assets have become one of the popular investment categories in the region, ranking 12th globally according to Chainalysis' Global Crypto Adoption Index.
**Optimistic Outlook:** 64% of surveyed individuals in Turkey believe that cryptocurrency prices will rise in the coming year, and 73% think the number of cryptocurrency investors will increase in the next five years, contributing to a continuous rise in local cryptocurrency holdings.
**Fourth Global Ranking in Cryptocurrency Trading Volume:**
Based on cryptocurrency trading volume, Turkey ranks as the fourth-largest market globally, following the United States, India, and the United Kingdom. The report suggests that the relatively high cryptocurrency adoption rate and trading volume in the region result from the challenging economic environment in recent years and local interest in blockchain innovation.
**Investment Preferences:**
**Cryptocurrency as a Popular Investment:** Cryptocurrency is widely regarded as an important investment tool among the Turkish population. The proportion of respondents investing in cryptocurrency (21%) surpasses those investing in precious metals, stocks, bonds, and real estate.
**Characteristics of Turkish Investors:**
**Active and Rapidly Growing Investor Base:** Among the current cryptocurrency asset holders in Turkey, 27% have entered the industry in less than a year, indicating that over a quarter of investors entered the market during the bear market of the past year.
**High Engagement:** Among surveyed individuals, 71% of investors check market trends multiple times a day, and 46% conduct at least one trade on average per day, reflecting the local population's positive attitude toward cryptocurrency investments.
**Attraction of Expected Profits:** Among surveyed individuals, 66% invest in cryptocurrency assets for their anticipated profits, followed by simple portfolio management (56%) and optimism about technology (40%).
**Impact of Economic Conditions:** Given Turkey's recent economic difficulties, it is believed that many individuals purchase cryptocurrency not only for profit but also as a means of preserving value in the face of economic challenges.
**Inflation Challenges:** The local Consumer Price Index (CPI) in Turkey remains above 60%, significantly affecting the lives of local residents. The lira has undergone substantial devaluation in recent years, prompting many Turkish individuals to invest in more stable assets such as BTC and stablecoins.
**Government Economic Policies:** Turkey's President Erdogan believes that raising interest rates cannot solve inflation and has implemented policies such as lowering interest rates to encourage consumption. This has been criticized by many economists as a large-scale economic experiment.
**Continued Cryptocurrency Purchases:** Despite the attempt to raise interest rates in June this year, the expected short-term effect on combating inflation has not materialized. It is anticipated that Turkish individuals will continue to purchase cryptocurrency in the near future.
The high adoption rate of cryptocurrencies in the Turkish market is driven by the challenging economic conditions faced by the local population. While celebrating the vibrant cryptocurrency market, it is important not to forget the original purpose of cryptocurrency creation – to empower individuals to resist improper government decisions. |
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Post time 17-11-2023 06:48:11