Culture
Inside Lebanon’s Currency Crisis: How Hyperinflation Feels
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1 month agoon
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adminLebanon is back in the headlines as the conflict in the Middle East intensifies. Before these latest developments, Lebanon had already become a symbol of how quickly a seemingly stable society can descend into chaos.
If you follow major events in the global economy, you’ll probably recall that Lebanon’s recent past serves as a vivid example of what a full-blown currency collapse looks like in a modern, advanced economy. While there are some great books that describe hyperinflation in detached, academic terms, what’s often missing is the human story – what it’s actually like to be a normal, productive person with a family and a bank account, and to live through the collapse of your country’s currency.
For a while now, I’ve known that my friend Tony Yazbeck, co-founder of The Bitcoin Way, had experienced this reality. But it wasn’t until I watched this interview with him that I realized how valuable his story is for everyone to hear. Tony’s story offers a rare, personal glimpse into what it means when your country’s banking system disintegrates, when you lose access to your savings, when food prices rise 10-fold in a few months, and when even basic necessities like medicine and fuel become luxuries.
I asked Tony if he could explain not only why Lebanon collapsed, but also how bitcoin could have been a lifeline in such a dire situation.
Lebanon: A country on the brink
Before its economic collapse, Lebanon was a vibrant, cosmopolitan country, often called the “Paris of the Middle East.” Its economy thrived on banking, tourism, and services, positioning it as a bridge between East and West. For Tony, this prosperity wasn’t an illusion—it was his daily life. “My life in Lebanon was extraordinary,” he recalls. “I ran three thriving businesses and lived a luxurious lifestyle. Whether it was the latest cars, the best restaurants, or the hottest clubs, Beirut had it all.”
Yet beneath the surface, cracks were forming. Lebanon’s banking sector, once a source of pride, was built on unsustainable practices, and the country was drowning in debt. For years, Lebanon’s central bank had pegged the Lebanese pound to the U.S. dollar at an artificially high rate, creating a false sense of stability.
This currency peg required constant inflows of dollars to maintain. When those inflows dried up, the house of cards collapsed.
In 2019, Lebanon’s banks began restricting access to savings, imposing informal capital controls without any legal framework. “Overnight, people lost access to their funds,” Tony says. “You couldn’t withdraw your own money, and even if you could, it was in Lebanese pounds that were rapidly losing value.”
For those unfamiliar with a currency crisis, the limitation of bank withdrawals is one of the first signs that the system is failing. The government and banks try to delay the inevitable by locking down money in the system. By then, it’s too late.
From thriving businesses to $70 in hand
In early 2020, Lebanon defaulted on its foreign debt, and the value of the Lebanese pound plummeted. Hyperinflation set in, destroying the purchasing power of ordinary people.
Tony watched helplessly as his savings evaporated and his businesses crumbled. “I went from being a successful entrepreneur to having just $70 to my name in what felt like the blink of an eye,” he recalls. “I couldn’t pay rent, school fees, or even afford basic groceries.”
Hyperinflation took hold with shocking speed. “A loaf of bread that once cost 1,500 LBP shot up to over 30,000 LBP within months,” Tony explains. Fuel prices were even worse. “In early 2023, a gallon of gas went from 25,000 LBP to over 500,000 LBP in just a few weeks. It was impossible to keep up with the prices.”
The destruction wasn’t limited to material wealth; the psychological toll was immense. Tony describes the anxiety and panic that came with watching his hard-earned success disappear. “For the first time in my life, I didn’t know what to do. I felt completely helpless.”.
A fractured civil society
As Lebanon’s currency collapsed, so did its social fabric. People who once lived comfortable, middle-class lives suddenly found themselves struggling for survival. Basic goods became scarce, and the price of everyday items skyrocketed.
Power dynamics within communities shifted as those who controlled essentials like food and fuel gained disproportionate influence. “There were reports of gangs taking over neighborhoods, controlling access to goods and demanding protection fees,” Tony recalls.
Even electricity became a luxury. With the national grid in shambles, most people had to rely on private generators, but the cost of running them was astronomical. “Monthly generator fees jumped from 200,000 LBP to over 4,000,000 LBP,” Tony explains. Many families were forced to live without power for long stretches of time.
In response to the crisis, people turned to alternative forms of exchange. Bartering became common, with people trading goods and services directly. “If you couldn’t pay in cash, you might offer plumbing work in exchange for groceries,” Tony says. The U.S. dollar, already widely used before the collapse, became the default currency for many transactions. Digital currencies, and especially stable coins like Tether (USDT), also gained traction as people sought ways to preserve value outside the collapsing banking system.
What could have been: Bitcoin as a lifeline
As Tony recounts the collapse, questions loom large: Could this have been prevented? Or at the very least, could individuals have somehow protected themselves better? For Tony, the answer is clear: Yes – with access to bitcoin, many of the worst effects of the crisis might have been avoided.
“If I had known about bitcoin before the crisis, it could have saved me,” Tony says without hesitation. “Bitcoin would have given me a way to store value outside the banking system, which completely failed. I wouldn’t have been locked out of my own savings, and I could have preserved my wealth as the Lebanese pound collapsed.”
Bitcoin is immune to the kind of capital controls Lebanon’s banks imposed in 2019. No government or bank can freeze your bitcoin or restrict access to it. In a country where the banking system became a trap, bitcoin would have provided a way out.
Even as Lebanon’s currency lost over 90% of its value, bitcoin held its purchasing power globally. “Bitcoin isn’t tied to any government or central bank, so it can’t be manipulated the way the Lebanese pound was,” Tony explains. “It’s a hedge against hyperinflation, which would have been critical when prices were doubling and tripling every few months.”
Bitcoin’s status as a digital bearer asset would have been equally important. “When cash becomes worthless and banks stop functioning, how do you pay for things? How do you trade?” Tony asks.
In Lebanon, bartering and informal exchanges became necessary for survival. In many situations, bitcoin may have served as a viable alternative to barter, worthless Lebanese pounds, and U.S. dollars that were difficult to obtain.
Lessons for the world
Lebanon’s crisis offers a stark warning to the rest of the world. While many people in developed countries believe that their economies are too stable to collapse in such a way, Tony’s experience should give us pause. “What happened to me could happen anywhere,” he warns. “Don’t think you’re immune just because you live in a so-called stable country. The mechanics of fiat currency are the same everywhere.”
Tony points to the U.S. as an example of a country that is walking the same dangerous path as Lebanon. “The U.S. national debt now exceeds $35 trillion. Since 1971, when the dollar was taken off the gold standard, the money supply has increased by over 8,000%. That kind of money printing can’t go on forever.”
While the U.S. benefits from being the issuer of the world’s reserve currency, that status isn’t guaranteed indefinitely. “All fiat currencies are headed to zero eventually,” Tony cautions. “Some will fail sooner than others, but they will all fail. The U.S. dollar might be the last to go, but its turn is coming.”
The lessons from Lebanon’s collapse are clear: Protect your wealth before a crisis hits, and don’t assume that your government or banking system will be there to save you when things go south. For Tony, that means turning to bitcoin. “Bitcoin is the only asset that’s truly un-confiscatable,” he says. “It’s the only way to escape a broken system.”
A new mission to rebuild with bitcoin
In the aftermath of Lebanon’s collapse, Tony has dedicated his life to helping others avoid the same fate. He founded The Bitcoin Way, a bitcoin education and technical services business designed to teach people how to use bitcoin to protect themselves from currency crises. “The crisis forced me to study and understand money,” Tony says. “I realized that the fiat system is a scam, designed by thieves to steal and control us. Bitcoin is the solution.”
Every day, Tony educates his clients about how to take control of their financial future using bitcoin. “Once you understand how bitcoin works, you see the flaws in traditional fiat systems,” Tony explains. “You learn how to manage your assets securely, make transactions independently of banks, and protect your wealth from inflation and economic instability.”
The road ahead
Tony believes that the collapse of the Lebanese pound was avoidable, but that would have required structural reforms that never came. “If Lebanon had tackled corruption, maintained transparency, and adjusted the currency peg responsibly, things might have turned out differently,” he says.
But given the deep-rooted corruption in Lebanon’s political and financial systems, the collapse was almost inevitable.
As Tony reflects on his experience, he sees parallels between pre-crisis Lebanon and the current state of many developed economies. “We’re seeing the same issues – rising debt, unsustainable monetary policies, and corrupt institutions,” he says.
The warning signs are there, but many people ignore them, believing that their country is somehow different.
For those who are paying attention, Tony offers practical advice. “Start educating yourself about bitcoin now, before it’s too late,” he urges. “Diversify your assets and don’t rely on fiat currency to preserve your wealth. The mechanics of hyperinflation don’t change just because you live in a wealthy country.”
Lebanon’s collapse is not just a cautionary tale for people living in developing economies. It’s a wake-up call for the entire world.
As governments continue to print money at unprecedented rates, the risk of a global currency crisis grows. Bitcoin offers a way out – an inflation-proof alternative that can protect the wealth of individuals when fiat currencies fail.
Tony’s experience is a stark reminder of the fragility of fiat systems and the importance of financial sovereignty. “With bitcoin in your custody, you have the power to protect yourself from corruption, manipulation, and inflation,” Tony says.
“You don’t need permission from a bank or a government to manage your own money. And that’s exactly what makes bitcoin the ultimate tool for financial freedom.”
This is a guest post by Dave Birnbaum. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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PAID IN BITCOIN: BTCPay Documentary Showcases Bitcoin as the Medium of Exchange at Bitcoin 2024 Conference in Nashville
Published
23 hours agoon
November 4, 2024By
adminBTCPay Server has just released a new documentary covering the use of bitcoin as a means of exchange this summer during the Bitcoin 2024 in Nashville. The documentary by Parker Worthington (@webworthy) takes a look at the behind the scenes set up of both BTCPay Server and Strike with merchants around the conference venue, documenting the use of bitcoin as a real payment tool during the course of the conference.
Watch the documentary below.
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Countries
The Bitcoin Popularity Index (BPI) – A Measure of Bitcoin Interest Around The World
Published
6 days agoon
October 30, 2024By
adminIntroduction
Introducing the Bitcoin Popularity Index (BPI), the first comprehensive search study of its kind. This index has been curated in an attempt to measure the global reach and impact of Bitcoin through a broad analysis of Google search queries.
Unlike many studies that offer absolute data or blend various aspects of cryptocurrency, the BPI data aims to deliver insights of Bitcoin interest specifically, by considering factors such as language diversity, Google’s browser dominance and population sizes. This approach allows us to gauge not just the raw interest but also the relative intensity of Bitcoin engagement across different nations. We can therefore highlight which countries are punching above their weight, relatively speaking.
While not intended as a definitive answer, the BPI serves as a useful exercise—perhaps the best snapshot we have amid imperfect data. By integrating these various elements, the Bitcoin Popularity Index offers a unique perspective, shifting away from generic metrics to provide a richer, more contextual understanding of how Bitcoin’s adoption is advancing worldwide.
You can download the infographic here.
Key Findings
- The USA scores the highest number of queries with 14,432,650 queries per month, followed closely by Brazil with 12,400,260. Germany, India and Turkey complete the top 5.
- The top 7 positions and 8 of the top 10 are occupied by Western European countries (as per EuroVoc’s regional definitions).
- “Western” countries around the world have an average BPI of approximately 3,720 (compared to 1,250 elsewhere), indicating a relatively high popularity of Bitcoin.
- Africa has the lowest BPI scores among the continents. This is unsurprising given that internet penetration in Africa is only 40%.
- The most prominent Bitcoin queries are price queries, and more often than not the price of bitcoin against the dollar. In Egypt, however, bitcoin is more frequently priced in bars of gold instead of the dollar or the Egyptian pound.
- The total number of monthly Bitcoin-related queries is nearly 77 million, with direct searches for “Bitcoin” approaching 10 million.
- The ratio of Bitcoin-to-Ethereum queries is 9:1.
A Comparison of Continents
Oceania leads with the highest average BPI at about 4,901, indicating a very strong popularity of Bitcoin in this region. This data is derived from just two countries (New Zealand and Australia), both benefiting from high levels of internet penetration.
Europe follows with an average BPI of 3,719 from 41 countries, showcasing the relative strength of Bitcoin popularity across the continent, placing it well above most other regions.
The Top 50 Countries
Countries 1-15
Countries 16-32
Countries 33-50
Methodology of Data Collection
- Selection of Data: Given that Google withholds all search query data for terms relating to cryptocurrency, identifying the most reliable dataset was important. In an effort to be as comprehensive as possible, datasets from SEMRUSH, Ahrefs, DataOs, Moz and Google Trends were all downloaded and researched. SEMRUSH proved to be the most reliable based on its accuracy and depth, which is consistent with SparkToro’s study as well as SEMRUSH’s own research on search volume data.
- Data Comparison and Selection: Although the results were often similar for the most part between SEMRUSH and Ahrefs, the two largest available datasets. There were significant discrepancies between the two for many terms. The data for some countries showed more than an 80% difference. This variability made it impractical to blend the data or fill in gaps for countries where SEMRUSH provided no data, as the differences were too substantial to reliably aggregate.
- Query Configuration: Broad match queries for “Bitcoin” and “BTC” were utilized across alphabet groups including Latin, Arabic, Hebrew, Cyrillic, Japanese, Devanagari, Perso-Arabic, Cyrillic, Tamil, Sinhala, Chinese and Thai.
- Incorporation of Demographic and Search Engine Data: Population figures were integrated from Worldometers, and Google’s market share data was sourced from Statcounter. For the purposes of this study, the Google market share was recalculated to 100% for all countries to standardize the impact of search engine usage on the data.
- Calculation of Per Capita Search Volume: With the aforementioned data, a per capita search query volume for each country was calculated. This step was crucial for normalizing the data across different populations, allowing for a like-with-like comparison of Bitcoin interest irrespective of country size.
- Data Visualization: The final results were categorized and plotted on a Chloropleth map using the visualization tool Datawrapper. This allowed for a clear visual representation of Bitcoin popularity across different countries, highlighting regions with particularly high or low levels of engagement.
The percentage of a country’s population using the internet wasn’t factored into the calculations, since those without internet access are less likely to show interest in Bitcoin. Africa’s most recently published internet adoption rate is 40%, comparable to the rates in Europe and the United States of America in 2005. Although this rate remains low, it is increasing, as is the adoption of Bitcoin.
Scope of Data and Limitations
The Bitcoin Popularity Index (BPI) offers comprehensive insights; however, it is constrained by the absence of data from 77 countries, including China, Iran, Cuba and 33 African nations — particularly Tanzania, Kenya and Sudan. This lack of data from key regions can result in an incomplete global perspective on Bitcoin engagement.
Furthermore, the BPI is based on third-party estimations, as Google does not share specific search query data for Bitcoin or other cryptocurrencies. VPNs can play their part too by obfuscating where searches originate from, but this is not expected to have impacted the results too much.
The data is erroneous in a small number of countries, as “BTC” is the name of a phone company in the Bahamas, an internet provider in Botswana and a shopping mall in Slovenia.
Summary
The Bitcoin Popularity Index (BPI) provides a detailed look at global interest in Bitcoin through the lens of Google search queries. While this study employs the best available data, it is important to note that it is not intended to definitively answer which country has the strongest Bitcoin adoption. Rather, the BPI serves as a gauge of general interest and engagement with Bitcoin across different nations.
The data reveals that Oceania has the strongest BPI scores, though Europe shows the greatest strength across the board, with 41 out of 43 countries performing strongly. It is also evident that search data is stronger in countries with higher internet penetration, thus creating a data bias favouring such countries.
A valuable follow-up to this study would involve examining other metrics that could provide further insights into Bitcoin adoption. Some examples of those metrics include the number of Bitcoin nodes, Bitcoin Lightning Network nodes or hashrate distribution. Such data points could offer a more comprehensive understanding of how deeply Bitcoin has permeated different regions and could help paint a fuller picture of its global adoption.
Furthermore, the goal is to make the BPI an annual calculation, providing a comparative approximation of how Bitcoin interest and adoption progress across all surveyed countries on a yearly basis.
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Culture
21 Million Fashion Makes Bitcoin Clothes That Are Worth the Sats
Published
7 days agoon
October 29, 2024By
adminLook, I like a certain kind of Bitcoin shirt.
Yes, the tacky ones with famous one-liners are fine, and so are the conference hand-outs. I, too, collect relics from crypto tragedies, holding on to my BitInstant and BlockFi t-shirts for posterity.
But, let’s be honest. Who wears these kinds of things in public?
When it comes to Bitcoin clothing, I still want something that fits into my day to day. Something that, you know, looks like streetwear, but that won’t attract attention, unless someone is really in the know.
Sadly, this is easier said than done.
That’s why when I was at the Lugano Plan B conference last week, I was blown away by 21 Million Fashion. I went back to the booth twice while I was there just to see if I wasn’t imagining it.
First, you’ve got its standard “Cotton Sweater,” which retails for $230. This picture really doesn’t do the product much justice. The fabric is densely knit and really high quality. Also the design really has a lot of small details that makes it look worth the price.
Next, it has a whole line of bomber jackets, which (if you’ve seen me on the Bitcoin Magazine livestreams) you’ll know is basically my favorite fashion product. I wear them in place of blazers and basically have since 2017.
Here’s the “Halving Bomber,” which runs a cool $320.
Again, the quality of this stuff really can’t be captured in images. The fabric is light and feels great. There’s a fairly wide selection of designs, and all of them are cool.
Even the t-shirts, which cost over $100, feel worth the price.
Look, I’m not here to convince you to buy from 21 Million Fashion. While I looked and looked, I ultimately didn’t buy. I’m on the verge of a key sat stacking goal at present, and am trying to hit my magic number – before Bitcoin runs away to $100,000. (Pray for me).
All I’m saying is that, when I strike it rich on Bitcoin, there will be signs. Wearing 21 Million Fashion’s stuff will be one of them.
This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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