While I can't substantiate it, I also have the feeling that current crypto hype is unnatural and kind of a bubble. It looks like a lot of fiat money is flowing

While I can't substantiate it, I also have the feeling that current crypto hype is unnatural and kind of a bubble. It looks like a lot of fiat money is flowing into crypto and one must wonder where this money is coming from. One obvious source is the overblown money supply of FED/ECB (with claimed reasons the COVID crisis). While initially some of this money must have been poured into things like SP500 (judging by the rapid index recovery in 2020), then it probably found a more fertile ground in the volatility of crypto markets and people's savings followed the hype (somewhat reminiscent of large scale ponzi scheme). Money supply and the resulting inflation does not serve a good purpose to fiat in the long run, because it diminishes its ability to serve as a store of value. If its other abilities (unit of exchange and accounting) are undermined, fiat will be in real trouble. So, I guess a crypto bubble serves a good purpose as a sort of a buffer for the inflation. In other words, if lots of people lose fiat money on a crypto bubble, there will be less money lost due to inflation for the ordinary folks. Replace crypto with stock, property and other bubbles and you basically get the same effect. So I guess what the Turkish government is doing is diminishing the ability of crypto to serve as a unit of exchange. If they don't do it, they might very well lose control of their monetary system. That is, all financial transactions (except maybe taxes) bypassing their local currency and leading to even more inflation and a default (or some kid of war).