TURKEY SET TO SHIFT TO CRYPTOCURRENCY DESPITE LIRA RECOVERY
Reports from Turkey suggests that investors are looking to embrace crypto and turning their backs on Lira despite its recovery. Turkish investors will spend more on cryptocurrencies in coming years.
According to report by Turkish researcher Twentify, they found that at least one in five respondents say they had started trading in cryptocurrencies since August this year. That was the period when the Lira massively plummeted in price. However, since that time onwards it has gone up by about 26% against the USD. Although, inflation in the Islamic nation remains high at 21.62% year-on-year as of November.
This is another reason that has made investors look for alternative ways to adequately protect their savings. Reuters reported that the growth of the Turkish economy has “crumbled to 1.6% year-on-year as of the third quarter of the year which is down from the 7% it dropped to in 2017.
Writing in a column for the Hürriyet Daily News, Erus Ablak a Turkish journalist and business expert declared that:
“It makes me very happy that the latest digital currency investments involve our country Turkey. This is partly because the Turkish people are adaptable to new technological advances and new methods.” Hence, it is easy to establish an eager crypto market.
CRYPTO IS AN ATTRACTIVE YET RISKY ALTERNATIVE FOR TURKISH
The Directorate of Religious Affairs the country’s chief religious body has previously ruled that digital asset use is not permitted under Islamic law. However, State author Sara Nasser goes on to conclude that, nevertheless, “digital currency can be seen as an attractive, yet risky dream” for most Turks. Vitalik Buterin, Ethereum’s co-founder, recently interacted with several Turkish crypto-enthusiasts via Twitter, expressing his shock at the growing size of the Islamic nation’s crypto-community.
Additionally, the fact that Istanbul will host the Blockchain Economy Summit, next February is an indication that the country is becoming more flexible regarding digital assets. The Blockchain Economy Summit is the AME region’s largest Blockchain and cryptocurrency-based forums.
BITCOIN COLLAPSE STILL CONTINUES
Bitcoin has experienced a modest price recovery following weeks of heavy losses, though market analysts warn the collapse may not yet be over. The cryptocurrency briefly dropped below $3,300 (£2,600) on Friday – taking it to its lowest value since August 2017 – but returned above $3,500 over the weekend. Less than a year ago, bitcoin was trading at close to $20,000.
It is not the first time in bitcoin’s 10-year history that it has seen such losses, leading experts to speculate how much further it might fall.
“In the past nine years, the crypto asset market experienced five major corrections with an 85 per cent drop in value on average,” Mati Greenspan, a senior market analyst at the online trading platform eToro, told The Independent.
“On this occasion, for bitcoin to record the same 85 per cent drop, its price would have to fall to $2,950.”
The latest prediction comes amid widespread speculation concerning the future of bitcoin and other leading cryptocurrencies like ethereum and ripple.
Noted investor Bobby Lee, who co-founded the Hong Kong-based bitcoin exchange BTCC, also pointed to previous market patterns to indicate what direction the price may go. Mr Lee suggested in a series of tweets that bitcoin could fall by another £1,000 before seeing a strong recovery.
“If history repeats itself perfectly, then the current bear market for Bitcoin would bottom out at $2,500 next month, in Jan 2019,” he tweeted.
“And then the next rally would start in late 2020, peak out in Dec 2021 at $333,000, and then crash back down to $41,000 in Jan 2023.”
It is not the only optimistic price forecast from a prominent figure in the cryptocurrency space, with Blockstream founder Adam Back recently suggesting that future gains will take bitcoin to more than 100-times today’s value.Responding to Mr Lee on Twitter, he said: “Personally I consider $250k-$500k/BTC plausible in the years ahead.”
ONLY TWO ASIC BITCOIN MINING RINGS REMAIN PROFITABLE
According to real-time data published by mining profitability data site ASICMinerValue.com (AMV), even the newest crypto mining machines are struggling to seal profits for their operators amid the cryptocurrency market crash.
AMV is a site that calculates real-time profitability rates for “ASIC” miners, hardware that uses Application-Specific Integrated Circuit (ASIC) chips, tailored to efficiently mine cryptocurrency based on a specific hashing algorithm. Updated every minute, the site calculates profit yields for specific miners based on current power costs, network difficulty, block rewards, and cryptocurrency prices.
As of press time, the site indicates that among ASIC mining machines geared to mine coins that are based on cryptographic hash function “SHA-256” –– such as Bitcoin (BTC) and Bitcoin Cash (BCH) –– only two are currently making any profit. Both models were released in October 2018, and show $0.58 and $0.21 in daily profits.
The currently most profitable machine, the Ebit 11++, was released by Chinese mining hardware manufacturer Ebang Communication and is currently priced at $2,024.
Just this week, mining manufacturing giant Bitmain has announced it will be closing its development center in Israel and firing local employees, with local reports attributing the decision to “the current situation” and “shake-up” of the global crypto market.