“In investing, what’s comfortable is rarely profitable.” – Robert Arnott
Covered:
- Lessons from Turkey
- Why Adoption is Exploding
Lessons From Turkey
Bitcoin and crypto do not feel very comfortable right now, but that’s the point. It requires mental fortitude to see the big picture.
When you stop looking at the price, clear your head, and solely pay attention to fundamentals and adoption, the long-term picture becomes clear: crypto is the best way to opt-out of a rigged and broken fiat system and keep your wealth safe.
There is no better example of this than what is happening in Turkey right now. As we reported on in our top 5 rug pulls of 2021, the Turkish Lira has plummeted in value, down more than 40% against the dollar year to date. In light of the fiat collapse, citizens are turning to Bitcoin, causing “a boom” in adoption, according to The Guardian.
Why Adoption is Exploding
Even with all the volatility inherent in crypto, Turkish citizens are ditching their fiat for crypto. As the Guardian reported: “lack of trust in official currency has led to surging interest in crypto.” This is exactly why we hold crypto, it is the best long-term hedge against money printing which causes inflation.
The options are simple; hold the ‘comfortable’ fiat currency and watch your value depreciate over time, or hold Bitcoin and other strong cryptos, and watch your value appreciate over time. In the direst straits, Turkish citizens are opting for the latter, and that should be a good indicator of how powerful crypto is.
As the article states: “an increasing number of younger [Turkish] investors see cryptocurrencies as the way forward.” As one interviewee said: “Even my mother is asking me to help her invest in Bitcoin now.” These are the things we have to keep in mind during a major market downtrend like today. Crypto is getting so big in Turkey that an estimated 5 million people own it. That is a 100% increase in a matter of months, according to data from triple-a.io.
The measures by President Erdogan to support the Lira have failed in the eyes of the citizens. “Long-term, it’s not going to help anything”, one man told the Guardian. He also said it’s a “way of life” to liberate crypto in Turkey. “I call on people to move towards these liberating
The founder of a crypto company in Tukey called NakitCoins told Al-Jazeera “The growing appetite for crypto is the latest manifestation of the Turkish public’s search for reliable investments.” Ask yourself: if crypto is such a volatile and unreliable asset class, then why would an entire country be embracing it to replace gold, forex, dollars, and their own currency?
So while the market swings may hurt, you will thank yourself for having the fortitude to hold on for dear life. If you ever think about selling in the red, just remember the story of the Turkish Lira. Keep in mind, the dollar, pound, and euro are no better. If they were, the Turks would prefer forex over crypto; they don’t.
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