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Lebanon: Bitcoin (BTC) more reliable than national currency

Sun 14 Nov 2021 ▪ 21h43 ▪ 3 min read — by Hugh Renolds

In the summer of 2019, Lebanon suffered a large-scale economic crisis as the financial pyramid on which the whole country was based collapsed. As a result, Lebanese citizens lost access to the money they had previously deposited in their bank accounts. At the moment, one US dollar can buy around 20,000 Lebanese pounds, which of course, doesn’t mean anything good for Lebanese citizens.

However, not all residents of the country are ready to just put up with the predicament. At some point, a decision was made to use cryptocurrencies instead of the Lebanese pound, so as not to depend on the rapid devaluation of the Lebanese pound.

Over the past year, the popularity of cryptocurrencies has grown a lot, and many of them have managed to draw the eyes and wallets of quite a few large-scale investors. The Lebanese have also contributed to these dynamics, as seen from the recent studies. For example, in January 2020, Blue Wallet reported that, compared with earlier data, the popularity of cryptocurrencies in Lebanon had grown more than 17 times, which is one of the highest rates in the world.

In addition, according to some crypto investors, the volume of trading in the cryptocurrency market among Lebanese users has increased significantly recently, and monthly bitcoin transactions have reached $10 million, which is a whopping figure for a state like Lebanon.

For many Lebanese citizens, cryptocurrencies have become the only way to escape the crisis and minimise their losses since, to use them, you don’t need to resort to local banks that are currently unable to promise any safety to their customers.

Cryptocurrencies are used by the Lebanese to protect against inflation

It’s worth noting is that most Lebanese crypto investors are not afraid of the extreme volatility of digital assets. They believe that even if Bitcoin suddenly drops by as much as a third, it’ll still be much more reliable than the Lebanese pound because the national currency has long since depreciated almost entirely.

It’s no secret that the life-assuring perks and features of cryptocurrencies are valued well beyond Lebanon. At the moment, digital assets are rapidly gaining traction in countries where the population is experiencing serious economic difficulties. Among such states are Argentina and Venezuela, as well as many African countries.

In all these states, people eventually tire of waiting for a miracle and resort to cryptocurrencies since they don’t require any intermediaries to deal with. Digital assets also serve as a shield against inflation and allow you to bypass all banking restrictions.

Could crypto really save the world one day? 

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Hugh Renolds avatar
Hugh Renolds

I believe in the bright future of crypto. I have been investing since 2017 and look to share my experience in, and thoughts on, crypto and the blockchain.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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