The outbreak of COVID-19 has led to a significant decline in economic growth. The recent economic challenge is associated with inflation that was triggered by governments printing more money to offset the negative impacts of the pandemic. Probably, this is the reason for such striking interest in the crypto market as it is inflation-friendly.
The inflation in Turkey is currently at about 16.2% and this is corroding the lira’s value. The Turkish citizens are now frustrated with the economic turmoil in the country and are now seeking safe haven in cryptocurrencies. Small businesses have now started to accept payment in Bitcoin, and this has pushed its price high to make a new record high of over $63,000.
The use of Bitcoin and other digital currencies has played a big role in the economic recession caused by Coronavirus. A lot of people, businesses and companies have stored their wealth in cryptocurrency in fear of inflation caused by the financial crisis due to the pandemic.
Goldman Sachs, the leading global investment banking management multinational firm, is set to host a client call to discuss Bitcoin, inflation, and gold on Wednesday, May 27, at 10:30 am EST according to a leaked invitation letter shared on twitter.
Many countries in the world have been going through economic turmoil in terms of high inflation and declining currency values. Some have even opted to print out more money to solve the economic crisis which in turn worsened the situation - currency devaluation. But the most opted plan was cryptocurrency, which seems to have yielded positive results to most governments.
Even though the cryptocurrency market is a highly volatile field, Turkish investors prefer Bitcoin over the national currency, the lira. In autumn, trading volumes in Turkey alone rose by 37%, proving that Bitcoin’s popularity was not affected by the bear crypto market trend.
Venezuela, a nation fighting one of the largest economic recessions, is ready to launch a fresh fiat currency linked to its oil-backed 'petro' virtual currency in October, according to what President Nicolas Maduro has said.
The way Cryptos are designed and how they behave may make it an inappropriate replacement for fiat currencies, particularly for people in economic and financial disorder, according to a report by FinTech and Blockchain technology research publication Diar published on Tuesday, September 11, 2018.