Notes from the Publisher: We saw a fair bit of news coverage about the Turkish coup and the spike in bitcoin pricing relative to the Turkish Lira, with the case offered again for holding some bitcoin as a hedge against political and currency risk. The piece below further makes that case.
“The Turkish government is currently rounding up members of the groups that launched a military coup in recent days. During the coup, citizens ran to their banks and local ATMs to get their wealth out of the system as Turkey’s currency dropped significantly in value.
As usual, many Bitcoiners believe residents living in Turkey should look to bitcoin to preserve their wealth. The Turkish Lira’s value has suffered as the military coup stirred fear throughout the country. With the civil unrest unfolding, media publications such as Seeking Alpha are reporting about bitcoin being used as a financial safe haven.
Seeking Alpha reporter Scott Tzu states: ‘Ten years ago this article would have been about gold. Today the conversation turns to bitcoin, and why we have a small allocation toward the digital currency.’
BraveNewCoin IndexWhen the military coup started on June 14, reports and photos of bank runs and long ATM lines surfaced on the Internet. The banks in Turkey tried to quell the financial fiasco by offering unlimited liquidity, and the Turkish Prime Minister told the world that “macroeconomic fundamentals remain solid.” Officials from the region wanted to reassure investors the coup would not cause turbulence within the country’s economy.”