How Can Crypto Such as BTC and ETH Help Lira Devaluation in Türkiye?
Key Takeaways
- Turkish Lira has lost over 80% of its value since 2018, pushing citizens to seek alternative stores of value like Bitcoin and Ethereum.
- BTC and ETH are being used as digital hedges, offering long-term protection against inflation thanks to limited or deflationary supply models.
- Crypto provides borderless, censorship-resistant access to global finance, especially helpful in Türkiye’s increasingly restrictive financial environment.
- Despite the potential, crypto carries real risks, including high volatility, evolving regulation, and user-side custody responsibilities.
- Türkiye ranks among the top crypto-adopting countries globally, with BTC/USDT volume growing rapidly — showing a real shift from speculation to financial survival.
With inflation soaring and the Turkish Lira losing over 80% of its value in just a few years, everyday citizens in Türkiye are in urgent need of financial alternatives. Traditional banks offer little protection, and foreign currencies are becoming harder to access due to growing restrictions. In this environment, Bitcoin (BTC) and Ethereum (ETH) are no longer just speculative assets — they are becoming lifelines for wealth preservation and financial freedom.
This article dives deep into how crypto can help hedge against Lira devaluation, explaining why so many Turks are turning to decentralized digital assets to protect their savings. Backed by real-world data, usage trends, and cautionary insights, it offers not just hope — but practical tools. Whether you’re a saver, freelancer, investor, or simply worried about your financial future, this guide will help you understand how crypto may be your strongest buffer against economic instability.
Table of Contents
- Introduction — The Decline of the Lira and Rise of Crypto
- How Bitcoin and Ethereum Can Act as a Store of Value
- Crypto’s Role in Financial Freedom and Accessibility
- Risks, Volatility, and Regulatory Considerations
- Final Thoughts — Can BTC and ETH Help Protect Turkish Wealth?
Introduction — The Decline of the Lira and Rise of Crypto
Türkiye has been facing a deepening currency crisis over the past decade. Since 2013, the Turkish Lira (TRY) has depreciated by over 90% against the US dollar, with 2022 alone witnessing a 40% drop in value. According to the Turkish Statistical Institute (TÜİK), annual inflation peaked at 85.5% in October 2022, before gradually easing to around 39.6% in 2023. Despite central bank interventions and political shifts, the currency continues to lose purchasing power, making financial stability a daily concern for ordinary citizens.
In such an environment, trust in traditional banking and fiat currency is eroding. As a result, Turkish citizens are increasingly seeking alternative stores of value — and one of the fastest-growing options is cryptocurrency, particularly Bitcoin (BTC) and Ethereum (ETH).
A 2023 report by Chainalysis ranked Türkiye #12 in global crypto adoption, with an estimated 10% to 12% of the population actively holding digital assets. In fact, Türkiye was the largest crypto market in the Middle East, with a total transaction volume of over $170 billion between July 2022 and June 2023.
What’s driving this adoption? For many, it’s about protection. Crypto assets like BTC and ETH are increasingly viewed as digital hedges — immune from domestic policy shifts and offering long-term growth potential. The transparent supply of Bitcoin (only 21 million coins will ever exist) and the deflationary mechanics introduced by Ethereum’s EIP-1559 make them more appealing than a currency prone to unchecked inflation.
As the BTC price shows relative stability over longer cycles, more Turkish investors are shifting from speculation to preservation. Trading pairs like BTC/USDT are also among the most active on regional platforms — not as a trend, but as a practical response to economic hardship.
How Bitcoin and Ethereum Can Act as a Store of Value
Why Turkish Citizens Are Looking Beyond the Lira
Inflation in Türkiye isn’t just a policy issue — it’s a daily financial reality. The Turkish Lira (TRY) has been steadily devaluing, with inflation soaring beyond 85% in late 2022 and remaining elevated in 2023. For many citizens, savings in Lira lose value before they even have the chance to use them.
This erosion of purchasing power has pushed people toward alternative assets — and crypto, particularly Bitcoin (BTC) and Ethereum (ETH), is increasingly being seen as a hedge against Lira devaluation.
BTC vs. Lira: A Performance Snapshot
Let’s compare how BTC has performed versus the Turkish Lira over time:
| Year | 1 BTC in TRY | BTC Growth Since Previous Period | Turkish Lira CPI Inflation |
|---|---|---|---|
| 2013 | ~1,000 TRY | — | 7.4% |
| 2018 | ~40,000 TRY | +3,900% | 20.3% |
| 2023 | 800,000+ TRY | +1,900% over 5 years | ~65% (estimated real rate) |
Sources: CoinGecko, TÜİK, Trading Economics, ShadowStats
Even with volatility, BTC has outpaced inflation dramatically — offering not just protection, but actual appreciation.
Why Bitcoin Is Seen as Digital Gold
BTC’s appeal lies in its limited supply of 21 million coins. Unlike fiat currencies, which central banks can inflate by printing more, Bitcoin’s issuance is mathematically fixed and publicly verifiable. Its decentralized nature removes dependence on any government or institution, giving Turkish users more financial sovereignty.
Moreover, BTC is liquid — it can be instantly converted through exchanges like XT.com, particularly via pairs like BTC/USDT, which are widely used by traders in Türkiye.
Ethereum’s Deflationary Shift
Ethereum plays a different but equally important role. Since the EIP-1559 upgrade in 2021, a portion of transaction fees are burned. This has led to the removal of over 4 million ETH from circulation, gradually turning ETH into a semi-deflationary asset.
This dynamic makes Ethereum not just useful for transactions and DeFi — but also for preserving value in the long run. While ETH is still more volatile than BTC, many Turkish users are beginning to treat it as a second digital reserve asset.
What It Means for Turkish Savers
Faced with declining faith in fiat, crypto provides an off-ramp from systemic risk. It’s not surprising that Turkish citizens increasingly use crypto as a tool for wealth preservation. Buying BTC and ETH isn’t just speculation — it’s protection.
The takeaway? In Türkiye, crypto as hedge against Lira devaluation is already happening — and BTC and ETH are leading that shift.
Crypto’s Role in Financial Freedom and Accessibility
Traditional Banking Limitations in Türkiye
In Türkiye, currency controls and bureaucratic red tape often limit citizens’ access to international financial systems. Turkish banks impose strict foreign currency withdrawal limits, and some platforms require lengthy approval processes for basic international transfers. Amid rising inflation and economic instability, this centralized financial framework feels increasingly fragile — especially to younger, tech-savvy populations.
According to Statista, only 67% of Turkish adults have a formal bank account — far lower than in developed economies. Even among those who are banked, inflationary pressure has pushed many to explore new alternatives.
Crypto: Borderless, Inclusive, and Always Open
Crypto doesn’t sleep — and it doesn’t ask for permission. With just a smartphone and internet access, Turkish users can send, receive, and store Bitcoin (BTC) and Ethereum (ETH) 24/7, without intermediaries or approval delays.
P2P trading platforms like Binance P2P, LocalBitcoins (until its shutdown), and XT.com offer direct fiat-to-crypto swaps using Turkish Lira. Additionally, centralized exchanges offer Lira deposits through bank transfers and credit cards, making access even easier.
This is particularly empowering for freelancers and entrepreneurs who get paid in foreign currencies. Instead of converting earnings into Lira and watching value dissolve, many now store income directly in BTC or ETH, safeguarding against the rapid decline of local purchasing power.
Self-Custody and Personal Control
Unlike traditional banking, where funds can be frozen or controlled by external parties, crypto offers true ownership through self-custody. Turkish citizens can hold their BTC or ETH in non-custodial wallets, protected by private keys. No institution can devalue, restrict, or seize those assets — a powerful benefit in an uncertain economy.
This ability to hold and transact money without bank approval has positioned crypto as a hedge against Lira devaluation, but also as a tool for financial autonomy and personal freedom.
Crypto Adoption Reflects a Structural Shift
A Chainalysis 2023 report shows Türkiye ranks in the top 15 globally for crypto adoption, driven by economic necessity rather than hype. Platforms like XT.com have reported increasing volume in the BTC/USDT pair among Turkish users, indicating real-world usage for savings and remittances.
This isn’t just a speculative trend — it’s a financial migration. Crypto is no longer just an asset class in Türkiye; it’s becoming a lifeline for accessibility and resilience.
Risks, Volatility, and Regulatory Considerations
Volatility: The Double-Edged Sword of Crypto
While Bitcoin (BTC) and Ethereum (ETH) are praised for preserving value long-term, their short-term volatility remains a major concern — especially for users who cannot afford sharp price swings. For instance, BTC dropped over 70% from its all-time high of ~$69,000 in late 2021 to below $20,000 in mid-2022, before recovering above $40,000 in 2024.
Such dramatic fluctuations can harm users who enter the market at peaks and panic sell during corrections. While the BTC price has historically trended upward over 4-year halving cycles, short-term instability is not ideal for users seeking day-to-day stability.
Türkiye’s Regulatory Environment: Unclear but Evolving
Türkiye’s government has taken a cautiously restrictive stance on crypto. In April 2021, the Central Bank of the Republic of Türkiye (CBRT) banned the use of cryptocurrencies for payments — citing transaction irreversibility and volatility. However, crypto trading and holding remain legal.
A new legal framework for digital assets is reportedly in the works. As of 2024, draft legislation proposes licensing requirements for crypto exchanges and tax reporting obligations for large transactions. While these steps could bring legitimacy, they may also limit anonymity and increase scrutiny on users.
It’s critical that Turkish crypto holders monitor regulatory updates to avoid future legal conflicts or penalties.
Custody, Security, and User Responsibility
One of crypto’s greatest strengths — self-custody — can also be a weakness if mismanaged. In 2021, Turkish exchange Thodex collapsed, wiping out over $2 billion in customer funds and leading to high-profile arrests. This event highlighted both the risks of using unregulated platforms and the importance of user education.
Users must learn how to properly use non-custodial wallets, safeguard private keys, and avoid phishing attacks. Without intermediaries, there’s no customer service hotline for lost funds — the responsibility is entirely on the user.
Centralization Tradeoffs: Exchanges and Fiat On-Ramps
While platforms like XT.com offer easier access, they still function within regulatory and operational frameworks that may restrict or freeze funds under legal pressure. Users should diversify between centralized exchanges (CEXs) and self-custody wallets, especially for long-term storage.
In short: Crypto offers freedom, but it requires discipline, knowledge, and proactive security habits.
Community & Social Media
Discord: Engage on XT’s Discord server for direct support, developer chats, and live AMA notifications.
Twitter: Follow @xtexchange for real-time announcements, market insights, and educational threads.
Telegram: Join XT’s official Telegram channel to discuss trading strategies, protocol updates, and community events.
Final Thoughts — Can BTC and ETH Help Protect Turkish Wealth?
In an economy where the national currency has lost public trust, Bitcoin (BTC) and Ethereum (ETH) are no longer fringe assets — they are practical tools of financial defense. While crypto is not a silver bullet for Türkiye’s inflation crisis, it offers something critical: an exit from fiat erosion and a gateway to global value systems.
As the BTC price continues to mature and exchanges like XT.com provide wider access to Turkish users, more citizens are using crypto to store value, retain purchasing power, and protect future wealth.
That said, crypto is not risk-free. It demands responsibility, learning, and smart decision-making. But in the face of persistent devaluation, BTC and ETH offer the Turkish public something their fiat cannot: choice.
And in uncertain times, financial choice is financial power.
Frequently Asked Questions (FAQs)
1. Is it legal to buy and hold crypto like BTC and ETH in Türkiye?
Yes. As of now, it is legal to buy, sell, and hold cryptocurrencies in Türkiye. However, using crypto as a payment method is banned, and regulations are evolving. It’s important to stay informed and use reputable platforms like XT.com.
2. How can I buy Bitcoin or Ethereum in Türkiye with Turkish Lira?
You can purchase crypto through centralized exchanges such as XT.com, Binance, or BTCTurk, which support Turkish Lira deposits via bank transfers or cards. Peer-to-peer (P2P) trading platforms are also widely used.
3. Isn’t crypto too volatile to be a reliable store of value?
While crypto does experience short-term price swings, Bitcoin and Ethereum have historically outperformed the Turkish Lira over longer periods. With the right strategy and mindset, they can serve as strong stores of value.
4. What risks should Turkish users be aware of when using crypto?
Users should be aware of price volatility, scams, unregulated platforms, regulatory changes, and the importance of securing private keys. Proper education and security practices are critical.
5. Can I hold crypto safely without using a bank or exchange?
Yes. Non-custodial wallets such as Trust Wallet, MetaMask, or hardware wallets like Ledger allow users to store crypto securely and independently. However, users must manage their own backup and security.
6. Are Turkish people really adopting crypto this quickly?
Yes. Türkiye is among the top crypto-adopting nations globally. Economic instability, inflation, and access to digital platforms have driven millions of users toward crypto assets.
7. Is crypto a permanent solution to Lira devaluation?
Crypto is not a complete solution, but it offers an effective hedge and diversification tool for individuals seeking to protect their wealth in a high-inflation environment.
Quick Links
– 100 Things You Must Know Before Trading Bitcoin: The Ultimate Beginner’s Guide
– How to Fix and Prevent a Stuck BTC Transaction in 2025: Complete Guide
– 10 Best Platforms for Trading BTC, ETH & Crypto in 2025
About XT.COM
Founded in 2018, XT.COM now serves nearly 7.8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM crypto exchange supports a rich variety of trading, such as spot trading, margin trading, and futures trading together with an aggregated NFT marketplace. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.
