Acceptance in a Conservative Market
Of all the places, a symbol for bitcoin (BTC) acceptance popped out in a 550 years old traditional Turkish Market. Located in Istanbul, the currency exchange office Santral Doviz displayed a prominent BTC symbol outside its store. This means that tourists can exchange bitcoin with the Turkish lira (TRY), a remarkable update in Turkish sentiments towards cryptocurrencies. Most traditional markets do not even accept credit cards and this position extends even to cashless societies like China and Taiwan.
The prevailing bitcoin symbol (Image from bitcoin.org)
Thus far, there are no official laws in place regarding cryptocurrencies in Turkey. However, the financial authorities in Turkey had previously ordered banks to avoid financing the operations of cryptocurrencies. This stemmed from the announcement by the Turkish government that BTC is not a legitimate form of money. This stunted the growth and popularity of cryptocurrency exchanges in Turkey with investors needing to rely on peer-to-peer exchanges instead. Back to the Turkish BTC signboard, this is a very positive signal of growing acceptance with cryptocurrencies in Turkey.
The Trickle-Down Effect of the US Dollar Rising Interest Rates on the Turkish Lira and Other Minor Currencies
Oftentimes the US dollar interest rates inevitably contribute towards currency crises in other countries especially those of emerging markets. Higher US dollar interest rates tend to attract investors back to the US market. As such, this could make investors in emerging markets like Turkey to be more inclined in adopting cryptocurrencies like BTC. This move could potentially hedge against the value of the Turkish lira and similar economies may follow suit. Hence, the situation can be akin to a rising tide that lifts all boats. This is especially true as the cryptocurrencies market matures with proper regulations and policies in place.
The Possibility of Bitcoin as Store of Value
The discussion on the possibility of BTC as a store of value always ends up in an inconclusive debate. The reason for this is partly due to its price volatility. But according to Matt Hougan of Bitwise Asset Management from an article on Forbes, BTC is displaying all the attributes of known and proven new store of value. This includes the exponential price growth and high volatility at the beginning that will stabilize over time. These similarities make BTC comparable to gold as a store of value. So, what is the possibility of BTC as a store of value? There is no guarantee but the chances as good as gold.