Turkey is witnessing a cryptocurrency boom as more than half its adult population turns to digital assets to safeguard their wealth and savings amidst rapid inflation and currency devaluation. The latest report on crypto users in Turkey reveals a significant surge in crypto adoption, especially among young adults.
The Crypto Surge
Conducted in May 2023, the survey unveils a staggering statistic: 52% of Turkish adults aged 18 to 60 have invested in cryptocurrencies. However, this marks a substantial increase of 12% from November 2021, when the figure stood at 40%. This surge underscores the growing importance of crypto assets in the nation’s financial landscape.
The surge in crypto adoption stands out, especially among young women, as 47% of female crypto investors are 18 to 30. This demographic shift highlights a broadening interest in digital assets among Turkey’s youth, transcending gender boundaries.
Inflation as the Catalyst
During the same period, the Turkish Lira faced a dramatic depreciation of over 50% against the U.S. Dollar. This currency instability has driven individuals to seek refuge in cryptocurrencies, viewing them as a hedge against inflation and a means to preserve their assets. More than a third of the survey respondents explicitly stated that they turned to cryptocurrencies to safeguard the value of their wealth.
Preferred Crypto Investments
The report also sheds light on the preferred cryptocurrencies among Turkish investors. Bitcoin leads the way, attracting 71% of overall crypto investors, Ethereum at 45%, and stablecoins at 33%. Interestingly, there is a burgeoning interest in Non-Fungible Tokens (NFTs), the Metaverse, and meme tokens, particularly among those aged 31 to 44.
The majority of respondents, 58%, expressed their intent to invest in cryptocurrencies long-term, aiming to build substantial wealth over time. Meanwhile, 37% of Turkish crypto users cited their primary goal as preserving the value of their assets.
Diverse Use Cases
The survey reveals a multifaceted use of cryptocurrencies in Turkey. A significant 70% of respondents utilize crypto assets for trading, signifying a robust interest in crypto as an investment tool. Additionally, 22% of participants use cryptocurrencies to invest in Non-Fungible Tokens (NFTs), while 19% actively participate in HODLing and staking on proof-of-stake blockchains.
Cryptocurrency is increasingly being accepted as a means of value transfer, with 14% of respondents using it for gifting purposes. Moreover, 13% utilize crypto for peer-to-peer money transfers and cross-border remittances due to its speed compared to traditional payment methods.
Approximately 8% of survey participants reported using crypto to make donations to non-profit organizations, reflecting the growing use of digital assets for philanthropic purposes and their potential to drive positive change in society.
The data from this survey paints a vivid picture of Turkey’s evolving relationship with cryptocurrency. It highlights the widespread adoption of digital assets and their versatility and integration into various aspects of daily life. As inflation and currency devaluation continue to challenge the nation’s financial stability, cryptocurrencies have emerge as a beacon of financial security and a conduit for innovation in the Turkish economy.