How is the Automobile Industry of Turkey Affected by Bitcoin?
The Turkish automotive exports were around 1,200,000 units in 2017. The Turkish automotive sector employs over 200,000 people, and the production volume of the industry was worth $16 billion in 2015.
In Turkey, the car manufacturing sector generated $10 billion in revenue and employed more than 450,000 people in 2017.
According to the bitcoin loophole, the Turkish bitcoin market has been growing steadily since 2013, with the most recent data available indicating over 30 thousand merchants accepting BTC as payment and approximately 260 thousand users actively using bitcoins to make a purchase.
6 Positives of Bitcoin Affects the Automobile Industry of Turkey
1) Bitcoin has become a source of interest for vehicle manufacturers in Turkey
One of the essential aims of cryptocurrency is to allow people to use their own money without any restrictions. Therefore, the vehicle manufacturers, which are also affected by this positive trend, have become one of the primary sources of interest in bitcoin.
If the US completely bans cryptocurrency usage, it will positively affect the Turkish automobile industry.
This is because after giving up on their dreams to turn Istanbul into Constantinople again, they are planning to make Beijing its new capital by 2023 with their ‘one belt, one road’ initiative. One important thing to mention is that the success of China’s new capital will increase exponentially.
2) With its low transaction costs and high privacy, bitcoin is a desirable payment method
Bitcoin provides an opportunity for companies to reduce their transaction costs and provide service in a privacy-friendly manner. Its low transaction costs and high privacy make it a desirable payment method.
3) The rate of cryptocurrency increases the demand for car purchases
While cryptocurrencies experienced a sharp increase in prices, car purchases also increased. This increase in need can be seen as a positive tendency for future investments. Therefore, it is possible to say that people who want to invest in cryptocurrencies prefer personal transport.
4) Bitcoin holders benefit from reduced risks and depreciation
Since there are no institutions or states such as banks, which control the supply of bitcoin, the collection is limited to 21 million. The cryptocurrency rate increases with increased demand, which reduces risk and helps keep value stable.
5) With their anonymity, bitcoins are used for money laundering purposes
Bitcoin transactions do not need any personal data to be made public, so they offer new opportunities for criminals who want to use new methods to cover their tracks.
This situation has been experienced in the real sector with money laundering operations carried out by criminal circles. It can be presumed that this will continue in future transactions of cryptocurrencies.
6) “The world is regulating bitcoin, we protect our investors” statements coming from automobile industry organizations
All over the world, there are efforts to draw attention to the tax and legal consequences of transactions with bitcoin. For example, it is suggested that the total income tax payable must be paid as a self-assessment penalty.
The statement “we protect our investors” came from the automobile industry organizations, which indicated that they wanted it to become an investment asset.
Some Negatives of bitcoin that affects the automobile sector of Turkey
1) Losing control over cryptocurrencies hurts car manufacturers
Since the total number of bitcoins is limited to 21 million, no more can be created beyond this limit.
However, there are already fears about losing control over cryptocurrencies for many countries that take advantage of their status as global currencies. Because of this, cryptocurrencies are not expected to be used widely anytime soon.
2) Bitcoin holders are forced to pay taxes on their investments
As with all transactions, transparency is needed when using cryptocurrencies.
Users who use bitcoins will likely face the same issues as those who use foreign currencies in the form of the income tax penalty.
One of the essential aims of cryptocurrencies is to allow people to use their own money without any restrictions. Therefore, it can be inferred that this system has a place in Turkey’s automotive market and globally.