- Lebanon needs Bitcoin adoption.
- Lebanon has experienced a consistent increase in inflation.
- Lebanon banks are defaulting.
- BTC adoption could save Lebanon.
Lebanon citizens need mass Bitcoin adoption
For many years Lebanon has been struggling with a financial crisis, but Bitcoin adoption ( BTC) could save it. In Lebanon, there has been a crisis of Government defaults while the Lebanese pound is devaluing.
The Lebanese banking system is fractured. According to the CEO of the Lebanese Institute of Market Studies, Patrick Mardini, by June 2020 the Lebanese pound exchange rate went from 1,500 to 4,000 Lebanese pounds for every dollar.
Lebanon’s fiat currency is failing
Trading Economics has revealed Lebanon has experienced an inflation climb for the thirteenth month in October 2020 to 136.8 percent. Prices for everyday life continue to increase for Lebanon citizens.
Consumer prices were up 5.3 percent in September and again in October after increasing by 3.9 percent.
Banks are failing
Banks have tried to put up a fight. Lebanon may be able to secure billions of dollars from the IMF to build its infrastructure. The Government wants to cut its debt by 62% and get rid of 44% of losses from foreign exchange.
The problem with banks gaining back control is the main bank has been defaulting on its debt, so the number of banks in the economy will reduce dramatically. In Lebanon, there will be an Oligopoly of 10 banks.
The issue is people do not want there to be any more bank defaults. The reality is the banking system is failing, and BTC is the solution.
Bitcoin an alternative
Bitcoin would be an excellent alternative for Lebanon because Bitcoin mostly increases in value, so it could be a real solution that could rescue the people of Lebanon. While Lebanon’s currency has been failing, BTC has only been increasing.
Over the year, there has been mostly bullish action measured by the Moving Average Convergence Divergence (MACD). The MACD is mostly green, pointing to bullish action.
The candles are also mostly green, indicating bullish movement. BTC performs so well, it is in the upper price level of the Bollinger Bands (BBs).
Operating in the higher part of the BBs suggests, that the coin is performing better than people expect consistently. The people of Lebanon would need a miracle to recover from their banks defaulting with their money. BTC is a solution that not only acts as a useful store, but it adds substantial value to your money.
Lebanon and Bitcoin
According to Charbel Choueh at Choueh Law talking to coindesk.com Bitcoin is already coming into Lebanon because of remittances and poker players. Thanks to Covid-19, there has been more demand for Bitcoin. Mr. Choueh was among the first accepting BTC from international clients.
The surge in popularity for BTC is coming from the freelance market. Bitcoin users use their money to pay off their bank debt.
Since 2013 the Lebanese people have traded between $1 million and $5 million worth of BTC. The Government is not making Bitcoin adoption easy because the people of Lebanon have to get their BTC from outside banks.
It is no surprise Lebanon announced in November plans to adopt cryptocurrency.
What the citizens of Lebanon need is a way to access Bitcoin within their country. The Bitcoin adoption path is far brighter than the murky journey the country is taking with its currency and banking system.