Lebanon’s currency is continuing to shed its market value amid the country’s deepening monetary crisis, with unofficial reports indicating that the Lebanese pound, or lira, has lost around more than 50% of its total purchasing power within less than 15 days.
Recently on 2nd July, native cryptocurrency advocate Saifedean Ammous, author of The Bitcoin Standard, while mentioning on Twitter revealed that after “having lost half its value within the last 10 days, the Lebanese lira is now worth just 1 satoshi” – comprising a historic low for the currency of roughly $0.000093 USD.
Also on 21st June, Ammous revealed that “10 years ago, one Lebanese lira was worth 0.67 Bitcoin’s.”
“Imagine spending 45 minutes explaining Bitcoin to a group of Lebanese people & then having one among them ask: ‘but without any central bank regulations, that guarantees Bitcon’s value?’” Ammous added.
Considering Existing Banking System, Bitcoin Is The Only Solution
It’s hard to verify the precise rate of exchange as Lebanon’s lira has officially been valued at $0.00066 USD since 1997, however chronic economic mismanagement has led to the emergence of a parallel marketplace for the currency. Reports indicate it’s seen its value plummet 86% in roughly 1 year.
The accelerating crisis has crippled lifestyle in Lebanon, with the country now preparing for a wave of emigration as it prepares to open its only international airport following COVID-19 restrictions.
“We’re like prisoners who do nothing but just try to escape,” 32-year-old graphic designer Bernard Hage told Al Jazeera.
However, the economic turmoil has revitalized interest in cryptocurrency among Lebanon’s youth, with an unofficial Twitter survey earlier in May indicating that 57.5% of locals would love to receive their salary in Bitcoin [BTC].
Also in February, 29-year-old Mahmoud Dgheim told Al Jazeera:
“Right now, Lebanese have an interest in escaping tight restrictions on cash withdrawals and transfers. They basically want financial freedom.”
“If you would like to travel round the existing banking system, Bitcoin may be only solution.”
1 Satoshi Vs Fiat Currencies
While many veterans within the cryptocurrency space once considered 1 satoshi was such a little monetary subdivision on be almost worthless, current Bitcoin prices have rendered the satoshi equivalent in value to several national currencies.
The fiat currencies of Guinea, Sierra Leone, or Laos, and Uzbekistan are all presently priced at roughly at $0.0001 USD – on the brink of the worth of just 1 satoshi.
1 satoshi trades for a 30% premium over Indonesia’s rupiah, it’s twice the worth of Vietnam’s dong, & over 8 times the worth of Iran’s rial.
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