Bitcoin freedom versus. Fiat currency monopoly

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Bitcoin looks like an attractive store of value as the Turkish economy experiences a huge downturn. The Turkish lira slumped 8% on Friday – 55% on the year – to a new all-time low of 17.0705 to the dollar. The central bank has taken a stifling easing policy approach to tackle “unhealthy” prices that continue to soar in the country. Their direct intervention by cutting interest rates triggered the new lira low.

Istanbul Chamber of Industry chairman Erdal Bahcivan, along with many economists, would be “astonished” by the reckless central bank that lowered its key rate by 100 basis points to 14 percent, to 500 basis points. base of decline since September. .

“We are amazed to see the central bank release its precious foreign exchange resources into the market today after cutting rates yesterday,” Erdal Bahcivan tweeted.

Inflation has climbed above 21% and is expected to hit 30% in 2022. The pound has fallen below half of its value this year and Turks are seeing their savings and wages fall into a death spiral. The motto would be “beyond the point of no return,” said Patrick Curran of Tellimer.

This is the bank’s fifth direct intervention in the market this month. His criticized policies come on the heels of pressure from President Recep Tayyip Erdogan, who believes that lowering rates will grow the Turkish economy, even though economists have urged the government to raise them. –The heads of government are generally not in charge of monetary policies.

Businesses are worried about the negative impact. Rifat Hisarciklioglu, head of the Union of Chambers and Commodity Exchanges of Turkey, calls for “urgent measures”.

Consumers’ eyes are on the possibilities Bitcoin and decentralization have to offer when the economy is at the throes of government strangulation and mismanagement.

Earlier this year, Turkey banned all cryptocurrency payments (investments are still legal), less orthodox plans and policies.

As their own book plummet, the bank cited volatility in the cryptocurrency market as one of the reasons for the ban. What banks do not say publicly is that Bitcoin can become a puzzle to cover up their – harmful – monetary policies, they oppose control.

Related reading | Turkey’s President Announces War on Cryptocurrencies

Bitcoin lost around 23% of its value during the month as markets fear the economic impact of the new variant of Covid and the reduction in bond purchases by the US Federal Reserve (FED), but part of the he attractiveness of BTC is that it has always rebounded. and many fiat currencies like the pound will not.

Bitcoin is a much better store of value, almost a shield, and opposes centralized models meant to make people fail.

Is it time to choose Bitcoin?

Turkish citizens have shown wide adoption of Bitcoin with one of the highest cryptocurrency exposures in the world in 2020. They continue to look to BTC as a way to face the crisis and protect themselves of reckless government.

Bitcoin is trading at 756,614.21 on the daily chart | Source: BTCTRY on TradingView.com

A consistent rhetoric is being broadcast around the world by central banks banning cryptocurrency activity or flirting with a ban, but we continue to see crypto adoption rise relative to FUD as actions from multiple banks hurt to consumers.

Michael Saylor, CEO of MicroStrategy, commented on the Turkish Lira crash on Twitter: “What follows is a parade of horrific – capital controls, debt default, wage and price controls, and resets. currencies. By the time you realize you need Bitcoin, it might be too late.

Fiduciary money is a legalized monopoly: it does not like competition, even if it benefits consumers. Central banks protect these monopolies, which means consumers – those who may suffer from their policies – are not the top priority. When cryptocurrency activities are banned, we can see how governments and central banks fear the free market.

Bitcoin: trustless, transparent and decentralized. Nothing that a government’s monopoly can offer. What they can do is “exploit and defraud,” Nobel Prize-winning economist Friedrich Hayek would say.

In the words of Satoshi Nakamoto:

The fundamental problem with conventional money is all the confidence it needs to function properly. We must trust the central bank not to depreciate the currency, but the history of fiat currencies is full of attacks on this confidence.

Related reading | Can Bitcoin Fix What Top Economists Say Central Banks Can’t Fix?

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