In May 2023, Turkey has witnessed a remarkable surge in cryptocurrency ownership, with over half of the adult population, aged between 18 and 60, now holding digital assets. This figure marks a significant increase from the 40% reported in November 2021.
Several factors have contributed to this surge:
- Wealth Accumulation: A significant portion, 58%, of Turkish crypto users view digital assets as a means to accumulate wealth over the long term.
- Inflation Hedge: Approximately 37% of respondents have turned to cryptocurrencies as a store of value due to the rapid devaluation of the Turkish Lira. The Lira has lost over 50% of its value against the US dollar, prompting individuals to explore alternative means of preserving their wealth.
When it comes to specific cryptocurrencies, Bitcoin is the top choice, with 71% of investors holding this digital asset. Ethereum follows closely behind, with 45% of respondents invested in the platform. Stablecoins also find favor among Turkish investors, with 33% including them in their portfolios.
Demographically, young women are increasingly showing interest in the crypto space, with 47% of female crypto investors falling within the 18 to 30 age group.
The power of word-of-mouth recommendations plays a pivotal role in crypto adoption, with 57% of respondents learning about cryptocurrencies from friends and family.
Crypto usage in Turkey spans various purposes, including trading (70%), investment in Non-Fungible Tokens (NFTs) (22%), HODLing or staking (19%), gifting (14%), peer-to-peer transfers and remittances (13%), and donations to non-profit organizations (8%).
The rapid devaluation of the Turkish Lira has driven interest in cryptocurrencies as a hedge against inflation and a store of value. The Turkish government is also experimenting with its central bank digital currency (CBDC), the Digital Lira.
These insights are based on a survey of 550 adult crypto investors in Turkey conducted by KuCoin. The report highlights the preference for a long-term investment approach among Turkish crypto investors rather than quick profit-seeking strategies.
The Central Bank of Turkey is tightening monetary policies to combat inflation, addressing concerns arising from the Lira’s depreciation. The ongoing devaluation of the Turkish Lira has propelled many in Turkey towards cryptocurrencies as a means to hedge against inflation and preserve their wealth, particularly among the younger generation. This trend showcases a shift in financial perspectives and a recognition of the potential benefits offered by blockchain technology and cryptocurrencies.
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