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Tuesday, June 28, 2022

Turkey Inflation Why We Need Bitcoin

Turkey is a cautionary tale and perhaps a harbinger of things to come for other countries with weakening currencies. The Turkish lira has fallen by nearly 45% against the dollar so far this year and has plummeted as much as 20% in one week. Economists believe that Turkey could be on the brink of hyperinflation as year-to-year Consumer Price Index could end up over 30% in the coming months.

While experts blame the Central Bank of the Republic of Turkey for not raising interest rates, people like Tal suffer the consequences of double-digit inflation. Tal (name changed to protect his identity) who works at a global coffee shop in Turkey, has observed “During the first week of January 2021, I was earning about 4,774 lira (or $360), but as of November it is about 2,917 lira (or $220). If I wanted to drink a large toffee nut latte, I would have to pay about 25% of what I earned for that day.”

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