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Turkey's case will be the new trend worldwide.

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@fabian98
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Hello everybody...

Turkey is the clear example of an economy in dire need of cryptocurrencies, as it is not having its best time due to poorly thought out or poorly implemented policies have caused the Turkish Lira to devalue by 45% this year, and is expected to be much higher next year, as Turkish leader Erdogan pushes ahead with his war of economic independence that is backed by low-interest rates to boost Turkey's economic growth by attracting foreign investment and making the Turkish Lira a competitive currency. But this implementation has not turned out as expected because what it has done rather is that there is more inflation in all prices of goods and services.

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But these measures have the opposite effect, since the multinational companies, seeing that the currency has no value and that the population cannot pay for their goods or services, choose to leave the country, as has been the case of Apple, which last month stopped selling in Turkey because it was something extremely unaffordable for the vast majority of Turks.

But this is something that is affecting the whole world since inflation is being felt even in economically powerful countries such as the United States or countries of the European Union, countries with more stable economies than Turkey, only in the latter this inflation is being fought in the worst way since it affects, even more, the Turkish economy.

Countries like Turkey, which depend mainly on imports, are seeing how prices are beginning to soar due to the rise of the dollar against the lira, which has a direct impact on the price of consumer products. The Turkish economy is also affected by the rise in the prices of imported raw materials such as fertilizers and gas so that even a basic meal costs 75% more than the previous year.

Now, low-interest-rate policies to attract foreign investment are a good idea considering the global tax that was imposed on large corporations or multinationals a few months ago, which was established so that multinational companies redirect their profits to places where taxes are lower. And the low-interest rates in Turkey can make the economy bounce back in the long run if they have enough foreign production and investment.

But this measure can be successful if Turkey adopts another currency as legal tender, as the Lira being a weak currency will always result in devaluation in the face of drastic measures like the ones being taken now. But this can change if they implement a good strategy.

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What is the role of cryptocurrencies?

They can also help to safeguard the value of the money of many Turks who see their savings or their life's work disappearing like water through their fingers, since cryptocurrencies are an excellent safeguard of value, they can be used as savings besides safeguarding value increase it with time.

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Turkey's case will be the new trend.


Now, why is it important for governments to take action regarding the adoption of cryptocurrencies? Because like Turkey, all countries in the world will be affected by mega inflation and currency devaluation, even hard currencies like the dollar, the euro, or the pound sterling, will see a massive devaluation.

Cryptocurrencies may be the best option to save an economy, El Salvador is already seeing the benefits of adopting bitcoin as legal tender and other countries are also adopting cryptocurrencies in other areas and are having success. Economies in crisis can be saved if they take the right steps to do so.

Posted Using LeoFinance Beta