Bitcoin Price Hits New All-Time High Against Turkish Lira

A famous Bitcoin skeptic has called for a gold-backed currency to save Turkey if its national fiat currency collapses.

In a tweet on Monday, John Hopkins professor Steve Hanke argues That hard money was now the only way out for Turkey, which has spent billions of dollars to support the lira.

Hanke: The Turkish lira is "toast"

At the time of going to press, these efforts were still unsuccessful, as another day of intense sales brought the lira to a record low against various currencies such as the euro and Bitcoin (BTC).

The weakness of the US dollar caused the lira-dollar pair to avoid a record of its own, but still fell to its lowest level since May.

"#Liras #Lira is toast," said Hanke.

“The central bank's net external assets are an astonishingly negative $ 32 billion. Turkey has run out of ammunition to defend the hopeless lira. Only a gold-covered currency board can save the lira. "

BTC / TRY life table

BTC / TRY life table. Source: TradingView

The situation in Turkey is reminiscent of the situation in Russia in 2014, when the Ukraine crisis triggered an escape in which the central bank continuously sold foreign exchange reserves to stabilize the ruble.

"They intervene quite a bit. The question is how long they can do it," said a strategist from the Dutch bank Rabobank told the Financial Times last week.

Ankara has adopted a laissez-faire approach to Bitcoin regulation, with a lack of formal recognition ironically opposed to measures such as banning PayPal in 2016.

Gold and Bitcoin bugs unite against interventionism

Hanke is known to favor other secure assets over BTC, which he does described in June as "no currency".

Together with Peter Schiff, he supports gold, which is itself at $ 1,975 – an all-time high in $.

Interventional strategies by governments and central banks with regard to currencies are an important argument for Bitcoin as an alternative. As Saifedean Ammous states in his now ubiquitous book The Bitcoin standardThe foreign currency leverage that Turkey is now using came about only because governments had removed gold support from their respective currencies.

In a timely post this week, Ammous highlighted A 1957 essay by Ludwig von Mises as an essential weapon against bowing to what he called Fiat's "inflationist nonsense".

"Nothing is more important today than to educate public opinion about the fundamental differences between real liberalism, which supports the free market economy, and the various interventionist parties that campaign for government interference," said Mises completed.

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