Good Time for Cryptocurrency!!-Fiat currencies of countries like Iran, Argentina, Venezuela, and Turkey are not doing well. As economies go through turbulent times and the currency crises heighten worldwide, Bitcoin and cryptocurrencies are becoming contenders to safeguard wealth.
All around the world, fiat currencies are going through crisis and economies are getting affected. The latest example is of Iran: after the nuclear deal blow, the US put economic sanctions on Iran that led to its currency. The Rial, getting dumped to serious levels; the currency hit an all-time low of 190,000 against the US dollar at the end of last month. Although it has rebounded to about 140,000 rials in recent days. The national currency has lost about two-thirds of its value in the last year.
Turkey is another example of a country that has recently had its national currency, the Lira, drop to a record low due to tariffs imposed by the US. If the difficulties keep on mounting, Turkey’s government will have to impose capital controls and stem capital outflow from the country, as put by Juan Villaverde of Weiss Ratings, which will increase the debt burden as a consequence. Due to concern about Turkey’s economy, investors are fleeing from the emerging markets.
Argentina is also suffering from high inflation as the Peso continues to fall. This has further overwhelmed Argentina’s economy. The political tension at the global level is affecting almost everyone as yet another emerging market, Brazil’s currency, the Real falls to its lowest in two years.
Bitcoin to the rescue
Good Time for Cryptocurrency!!-In the wake of these events, people have started turning to cryptocurrencies to protect their investments and wealth. In Turkey, not only did the Google Searches for Bitcoin double, but the trading volume on the crypto exchanges also took a spike.
Countries like Argentina understand the currency collapse scenarios and that Bitcoin and other cryptocurrencies can help to preserve their wealth. As for Iran, trying to protect itself from US sanctions. It has been turning to Bitcoin and is planning to create its own cryptocurrency. Bitcoin searches on the internet have risen in Iran in the last three months. Furthermore, the country removed the US Dollar from its official currency rate reporting platform, replacing it with China’s Yuan.
When it comes to Venezuela, the citizens of the country are finding a safe haven in Bitcoin. Its president, Nicolas Maduro introduced the controversial Petro cryptocurrency. Dash, another cryptocurrency is making a lot of headway in the country as well.
Amidst the recent US-China trade war and the Japanese waiting on The Bank of Japan to make a decision about interest policy, Bitcoin trading volume and price took a hike as well. Every time something like this happens, people migrate into cryptocurrencies.
Bitcoin or other digital currencies may not become the new financial standard overnight, it will take a long time for the masses to settle here and demand that the government provide them the same level of value, transparency, and accountability, but they are already and increasingly becoming the alternative to falling Fiat currencies.