Countries around the world that have a failed economy are spinning new regulations banning Bitcoin in order to cover for their own failings. We saw this week that Turkey is banning the use of Bitcoin for payments which tells us how bad things really are for the people of Turkey. The headlines around the world is FUD saying Turkey bans Bitcoin as they haven't. The Government hasn't stopped their citizens buying and selling Bitcoin on the exchanges but more about the use of it as payment for goods and services.
Over the last few months financial tech apps for crypto payments have been booming in Turkey which tells us that the people are not investing in Bitcoin just for making profits but are actually moving away from the Turkish Lire as a replacement. For a government that must be seriously scary as that is when you have lost control. No one can blame the people of Turkey for what they are doing as firstly they want their finances to be stable keeping the buying power they once had not that long ago.
I can see the predicament the Turkish Government is facing right now as the fear is the people have decided to replace their currency for every day use with Bitcoin. With the Turkish Lire losing so much value inflation is rampant so the obvious course of action is to use something that is holding it's value against the dollar and in this case increasing being Bitcoin. Imagine if you were paying for every day goods with prices increasing everyday due to your currency losing value.
The writing is on the wall as when I posted about this story during the week I thought it was the people of turkey investing in Bitcoin to stay ahead ,but that is not entirely true. By buying Bitcoin they have been getting ahead but they are also through mass adoption replacing their currency due to the value decreasing on daily levels. This is severe as people normally don't like drastic change and this is drastic.
Kind of expected as the elite always earn more than the rest and why the Government banning crypto for the safety of the people is more about protecting themselves as they have lost control.
When we look at cryptocurrency we want to see every day use and this is extreme as it is saving a nation from a financial melt down. It wont save the country from financial woes but it could lessen the pain for the citizens of Turkey. Taxes will be a hard one now as if trade goes underground due to the banning then the Government is going to seriously struggle.
Turkey will not be the first and last case like this as Syria is going through something similar right now as their currency loses more value each month. Countries like Nigeria obviously felt threatened fearing the same sort of thing happening in Turkey as once the house comes tumbling down it happens quickly.
I can see something similar happen in South Africa if the depreciation of the local currency continues it's trend over the years to come. This is not being a revolutionary but more of a realist with self survival skills. People in this day and age have choices with technology allowing anyone to use crypto as a replacement currency.
What can the Turkish Government do to control the ban is more worrying as they will need to have harsh laws to make examples of people not abiding by them. This is the last straw and will not end well and is the end of the government there as it is now. They know they have lost control as they have lost their economy and their days are numbered.
Posted Using LeoFinance Beta