In Lebanon, Locals Mine Bitcoin And Buy Groceries With Tether
- The unstable financial situation in Lebanon has brought some Lebanese to crypto as the locals are now purchasing Bitcoin (BTC) by mining them despite the crypto mining industry suffering from crypto winter.
- The country’s native currency has lost almost all of its value against the US dollar while the banking system has collapse and as per Michael Saylor, former CEO of MicroStrategy, Bitcoin is the only solution.
- People have started using popular messaging application Telegram to trade USDT, which is in huge demand and can be paid at cafes, tours, and electronics stores in exchange for services.
In Lebanon, the economic crisis has given investors the incentive to turn to crypto assets for help, and it seems that the situation is likely to change for the crypto industry in the country, which is home to roughly six million people. Additionally, it was also reported that the country’s native currency has lost almost all of its value against the US dollar.
According to a report from CNBC published on Saturday, the unstable financial situation in Lebanon has brought some Lebanese to crypto as the locals are now purchasing Bitcoin (BTC) by mining them and also, they are storing wealth using cryptocurrencies and stablecoins like USDT. The financial disaster that struck the nation was a result of super expensive wars and poor spending decisions by the people in power.
Following the report, the co-founder, former CEO, and current executive chairman of software company MicroStrategy, commented on the conditions of the country while stating the fact that Bitcoin, the world’s biggest and oldest crypto coin, is the only hope for the local residents of the failed economy.
Bitcoin is hope for Lebanon, where the currency has lost 96% of its value vs USD and the banks have failed,”said MicroStrategy co-founder Michael Saylor via a Twitter post.
Lebanon was once known for its stable banking system and economy but the situation has worsened since 2019 as the people in the country expect cryptocurrencies like Bitcoin to be the only salvation that the country has available. There is hyperinflation rampant and the native currency is practically worthless as banking system has failed.
Locals are currently freelancing and getting paid in Bitcoin and crypto which enables them to safely store their wealth and people are now seeing BTC as their bank. Many have lost faith in the monetary system and have started using popular messaging application Telegram to trade USDT, which is in huge demand and can be paid at cafes, tours, and electronics stores in exchange for services. Tether is being swapped for US dollars to make ends meet.
One restaurant stated that about 30% are paid in crypto, while adding “we deposit money in mobile phones (instead of banks).”
The crypto mining industry has been affected strongly by the current crypto market downturn but it hasn’t deterred citizens from investing and mining the world’s leading cryptocurrency as it is best known for its deflationary qualities which can help combat the hyperinflation in the Middle Eastern nation.