TL; DR Breakdown
- Lebanese people are actively searching for Bitcoin
- The government is seizing bank accounts
- This trend could be good for BTC
Bitcoin seems to be scoring huge points in Lebanon of late. Reports reveal that the Lebanese people are currently exploring ways to keep their wealth intact, and Bitcoin is emerging as the best option. It appears that Google searches for Bitcoin have skyrocketed in Lebanon.
According to a recent tweet by a BTC enthusiast, the fiat currency (Lebanese pound) has shed off a whole 90% of its value since late 2019. That means that in under two years, the currency has gone from affording decent shopping to only affording a small can of milk. This clearly highlights the problem with fiat currencies that have continuously faced inflation over the years.
Why bank accounts in Lebanon are being seized
The loss of value of the currency isn’t the only reason driving the Lebanese people towards BTC. The Lebanese government has been on an aggressive drive to seize people’s bank accounts, leaving them no other way to keep their wealth safe. As inflation increases, money lying in bank accounts continues to lose value.
It’s a fact that a lot of governments are wary of cryptocurrencies like Bitcoin undermining their financial control of their populations, but this becomes a real problem when inflation is biting hard and people need to secure their hard earnings in alternative forms. This explains why BTC is gaining more popularity in the country even as the government continues to seize bank accounts. To many, Bitcoin is their gateway to freedom from seemingly oppressive government policies.
What it means for Bitcoin
It’s a custom in the crypto market that when an asset is gaining popularity, it gains more users and ultimately wins in terms of adoption. If the trend continues and pushes up demand, prices could react upwards as well. As of now, the market is yet to react to the events in Lebanon. Time will tell.