Survey Reveals Turkish Investors Prefer Cryptocurrencies Over Real Estate and Stocks

In a recent survey conducted by Turkish cryptocurrency exchange Paribu, it’s clear that Turkish investors are increasingly favoring digital assets over more traditional investments like real estate and stocks. The “2024 Cryptocurrency Awareness and Perception” survey gathered insights from over 2,000 individuals familiar with cryptocurrencies, including 541 active crypto traders. The results highlight a significant shift in Turkey’s investment landscape, with a growing appetite for digital assets among a population already highly aware of cryptocurrency’s potential.

Rising Preference for Digital Assets Amid Economic Shifts

While gold remains the top choice for Turkish investors—56% of respondents ranked it as their preferred asset—cryptocurrencies are climbing up the ranks, with 30% of participants choosing digital assets. This places crypto ahead of real estate, which saw a slight dip in preference, dropping from 30% in 2023 to 26% in 2024. Meanwhile, stocks and mutual funds experienced a modest rise in interest, increasing from 13% to 18%, yet they still trail behind both real estate and crypto investments.

Nergis Nurcan Karababa, research content manager at Paribu, points out that several factors are driving this shift toward cryptocurrencies. Transaction speed, accessibility, and the potential for high returns make digital assets particularly appealing. “Compared to traditional financial products, crypto assets may experience much higher rates of adoption,” Karababa noted, emphasizing that Turkey’s economic environment and tech-savvy population contribute to crypto’s appeal.

Turkey’s high inflation rate and economic instability in recent years have made cryptocurrencies an attractive option for those seeking alternatives to conventional investments. With growing institutional interest, digital assets are increasingly seen as viable investment options rather than speculative instruments.

Near-Universal Awareness of Cryptocurrencies in Turkey

One of the survey’s standout findings is the nearly universal awareness of cryptocurrencies in Turkey. As of 2024, around 99% of respondents recognized digital assets, a significant increase from just 16% awareness in 2020. This surge in familiarity coincides with major market events, such as the $3 trillion peak in cryptocurrency market capitalization in 2021, when popular assets like Bitcoin and Ether reached new all-time highs. These milestones undoubtedly helped drive interest and awareness, leading to Turkey’s current position as a major player in the global crypto market.

In terms of global rankings, Turkey is the fourth-largest cryptocurrency market worldwide, with an estimated trading volume of $170 billion. This volume surpasses that of several prominent markets, including Russia, Canada, and Germany. Such high levels of participation highlight Turkey’s substantial influence in the crypto space, as investors increasingly look to digital assets as a hedge against economic uncertainty.

Limited Knowledge of Blockchain Technology

While awareness of cryptocurrency is nearly universal, understanding of the underlying blockchain technology remains limited. The survey found that 72% of respondents lack a basic understanding of blockchain, though there has been slight improvement, with 25% of participants recognizing blockchain in 2023—a small but notable increase from the previous year. Among those aware of blockchain, the majority (67%) associate it directly with cryptocurrency, underscoring a narrow understanding of the technology’s broader applications.

Despite this gap in blockchain knowledge, Turkey’s role in the global crypto market is growing. The Turkish government has taken steps to formalize the industry, with the Capital Markets Board (CMB) announcing that 47 cryptocurrency firms have applied for licenses under new regulations introduced in August. Applicants include well-known exchanges such as Binance TR, Bitfinex, and OKX TR, though notable platforms like Coinbase, KuCoin, and Bybit have yet to join.

Turkey’s Crypto Landscape: Regulations and Growing Institutional Interest

Turkey’s regulatory environment for cryptocurrency is evolving. As more firms seek to establish a formal presence in the country, regulatory frameworks are being set in place to provide oversight and ensure consumer protection. The CMB’s recent licensing regulations signify a step toward legitimizing and stabilizing the crypto market, potentially attracting more institutional investors.

For many Turkish investors, the appeal of cryptocurrency is tied to the country’s economic backdrop. High inflation and currency devaluation have led to an increasing demand for alternative assets, with crypto filling this role. As Turkish investors look for ways to preserve their wealth, digital assets offer a hedge against local economic fluctuations, positioning them as an attractive alternative to foreign currency, stocks, and real estate.

The survey results underline Turkey’s significant role in the crypto industry and the shifting preferences among its investors. As the government continues to shape regulations, Turkey’s stance on crypto could serve as a model for other emerging markets navigating the challenges and opportunities of digital finance. For now, Turkish investors’ preference for cryptocurrencies over traditional assets signals a transformative moment in the country’s investment landscape.