Turkey's high inflation: Over half of adults invest in cryptocurrencies, with Bitcoin being the most popular

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2023-09-05 16:47:34
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Turkey's inflation rate reached 58.94% in August, and forecasts indicate that with the rapid depreciation of the Turkish lira, the inflation rate in Turkey will soar to 85.5% in October, potentially the highest in 24 years. Amid high inflation, Turkey has become a hotbed for cryptocurrency investment.

Compiled by: Felix, PANews

Introduction: The report shows that the participation of young women is increasing, with 36% of investors investing over $3,700, and cryptocurrency is gradually becoming a "mainstream asset."

Turkey's inflation rate reached 58.94% in August, and forecasts indicate that as the Turkish lira rapidly depreciates, the inflation rate in Turkey will soar to 85.5% in October, potentially the highest in 24 years. Amid high inflation, Turkey has become a hotbed for cryptocurrency investment.

The cryptocurrency exchange KuCoin recently released a report outlining the state of cryptocurrency activity and expansion in Turkey. The report is based on a survey of 550 adult cryptocurrency investors aged 18 to 60 in Turkey. Cryptocurrency users are defined as those who currently own or have invested in cryptocurrency in the past six months. The survey was conducted online from May 5 to May 12, 2023. Below is the full report compiled by PANews.

Over half of Turkish adults participate in cryptocurrency investment, with increased participation from young women

The survey shows a significant increase in cryptocurrency investors among Turkish adults. Over the past 18 months, the share of cryptocurrency investors among Turks aged 18 to 60 has grown by 12%, from 40% in November 2021 to 52% in May 2023, indicating a growing interest and acceptance of cryptocurrency among the Turkish public. Meanwhile, the official currency, the lira, has depreciated by over 50% against the dollar, making cryptocurrency a haven against inflation.

Turkey's high inflation: Over half of adults invest in cryptocurrency, with Bitcoin being the most popular

Although male investors still account for 57% of all cryptocurrency investors, the trend of female participation among the younger generation is becoming increasingly evident. Among cryptocurrency investors aged 18 to 30, nearly half (47%) are women, while this proportion is only 37% among investors aged 45 and older, indicating that as cryptocurrency becomes mainstream, the gender gap is gradually narrowing.

Turkey's high inflation: Over half of adults invest in cryptocurrency, with Bitcoin being the most popular

31% of cryptocurrency investors joined in the last quarter, and 36% invested over $3,700

The age distribution of cryptocurrency investors indicates higher participation from the younger generation. Those aged 31 to 44 account for 48% of the total cryptocurrency investors, followed by those aged 18 to 30 at 37%. 31% of cryptocurrency investors made their first investment in the past three months. The younger generation shows a strong presence as new entrants, with 54% of cryptocurrency investors under 30 entering the market in the past year.

On the other hand, among investors aged 45 and older, 37% have invested in cryptocurrency for over three years. The survey also revealed differences in investment amounts. Despite being inexperienced in cryptocurrency investment, a significant proportion (33%) of young investors under 30 invested over 100,000 lira (approximately $3,735). The growing interest of young investors and the participation of the older generation further highlight the increasing acceptance of cryptocurrency in Turkey.

Turkey's high inflation: Over half of adults invest in cryptocurrency, with Bitcoin being the most popular

58% invest in cryptocurrency for wealth growth, and 37% for value storage

The survey reveals the motivations and preferences of adult cryptocurrency investors in Turkey. 58% of respondents indicated that their primary motivation for investing in cryptocurrency is long-term wealth accumulation. This view is consistent across all age groups, emphasizing cryptocurrency's role as a tool for achieving financial growth.

However, the motivations differ slightly among generations. Older investors prioritize value storage and diversified portfolios, while the younger generation emphasizes the convenience of trading and quicker profits. 37% mentioned that the main reason for investing in cryptocurrency is to store asset value, while 25% believe that diversifying their portfolio is the primary motivation, recognizing the benefits of cryptocurrency in reducing risk. These motivations are particularly evident among investors aged 45 and older.

34% hold cryptocurrency for easier transfers, indicating their recognition of the efficiency and speed that cryptocurrency brings. 17% admitted that their motivation is short-term profits and pure enjoyment of the investment process, aligning with the experimental and exploratory nature of the crypto market. These sentiments are more pronounced among the younger generation.

Turkey's high inflation: Over half of adults invest in cryptocurrency, with Bitcoin being the most popular

71% are interested in investing in Bitcoin, followed by Ethereum (45%) and stablecoins (33%)

The survey provides insights into specific cryptocurrencies and crypto-related concepts, which vary among different age groups.

Bitcoin is highly popular among adult cryptocurrency investors in Turkey. 71% of all investors and 79% of older investors expressed interest in investing in Bitcoin. This reflects Bitcoin's status as the pioneer of cryptocurrency and its recognition as a store of value and digital gold.

Ethereum ranks second, with 45% of investors and 52% of young investors expressing interest in investing in it.

Stablecoins, which are pegged to stable assets like fiat currencies, attracted the investment interest of 33% of respondents, reflecting a desire for stable and reliable digital assets that can be used for trading, transferring, and holding value.

The survey also highlights interest in NFTs and the Metaverse concept. About 21% of respondents expressed interest in NFTs, while 19% were interested in the Metaverse.

18% of respondents are interested in emerging categories like Meme coins, while public chains and DeFi each account for about 12%.

Turkey's high inflation: Over half of adults invest in cryptocurrency, with Bitcoin being the most popular

70% use cryptocurrency for trading, and 22% use it to purchase NFTs

The survey emphasizes the various use cases of cryptocurrency. Trading is the most common use of cryptocurrency, accounting for 70%, indicating a strong interest in using cryptocurrency as an investment tool.

22% use cryptocurrency to purchase NFTs. 19% hold and stake, indicating that a significant portion views cryptocurrency as a means of generating passive income. The data also shows that as age increases, the proportion engaged in holding, earning, and staking tends to rise. This may suggest that older respondents are more inclined toward long-term investment strategies.

14% use cryptocurrency for gifting purposes, indicating that cryptocurrency is viewed not only for personal use but also as a means to gift or transfer value to others. 13% use crypto technology for peer-to-peer transfers, suggesting that crypto technology has the potential to become a convenient alternative to traditional transfer methods.

Interestingly, 9% of respondents use cryptocurrency to receive or pay salaries, and 8% use it to donate to non-profit organizations, indicating the potential applications of cryptocurrency in employment and charitable endeavors.

Turkey's high inflation: Over half of adults invest in cryptocurrency, with Bitcoin being the most popular

57% were introduced by friends or family, and 35% through community introductions

The appeal of cryptocurrency is often driven by word of mouth. 57% of respondents indicated that they were introduced to cryptocurrency by friends or family. This highlights the crucial role of interpersonal relationships in sparking curiosity and encouraging newcomers to venture into the digital finance space.

The community has become another influential avenue, accounting for 35% of respondents. Whether through online forums, social groups, or local meetups, communities provide individuals with a good environment to learn and explore crypto concepts, reflecting the collaborative nature of the Turkish crypto community.

32% of respondents noted that other traders played a role in introducing them to cryptocurrency, indicating the interconnected nature of the trading environment.

Finally, social media has had a significant impact, with 27% of respondents attributing their entry into the crypto world to KOLs. Regarding sources of information, crypto investors (especially the younger demographic) primarily rely on: YouTube (41%), X Twitter (34%), Telegram (29%), and Instagram (19%).

Turkey's high inflation: Over half of adults invest in cryptocurrency, with Bitcoin being the most popular

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