Michael J. Saylor, co-founder of Microstrategy, stated that he believes in using Bitcoin (BTC) is the solution to the financial crisis Lebanon is experiencing as the country’s currency has lost 96% of its value against the US dollar (USD).
Saylor made his point Twitter because he claimed that the commercial banks were bankrupting the country. Lebanon, a country long known for its stable and investment-friendly financial system, has slipped into anarchy as the country has been gripped by hyperinflation and banks have imposed severe cuts in withdrawing the dollar.
The use of digital assets became a thing when Lebanon was experiencing a financial crisis in 2019, a decentralized and seamless digital currency outside the control of bankers and the government came into play, according to reports at the time.
Lebanon currently has 6 Bitcoin ATMs. There is one in Aamchit and five in Beirut, but those interviewed in the report say the best way to access bitcoins is to earn them by working/mining or alternatively by purchasing it for Tether stablecoin.
Using Bitcoin as an Anti-Inflation Tool
Satoshi Nakamoto invented the first cryptocurrency, bitcoin (BTC), in 2008. Bitcoin has since changed its usage and monetary forms, money issuance standards, and money mobility due to its underlying blockchain technology
Michael Saylor has previously stated that using Bitcoin to fight inflation is a viable option. Saylor did a declaration last year that corporate investors can use bitcoin to fight inflation.
He stated that “in order to preserve shareholder value, conventional treasury practices are no longer effective. To control the dilution that monetary inflation has on their balance sheets, corporations need new management strategies. Bitcoin is the ideal solution.”
According to a survey by Paxful, Argentina bitcoin display and more cryptocurrencies as the most effective hedge against inflation. According to the study, the majority of respondents used cryptocurrencies to protect themselves against rising inflation, and about 70% of respondents believe that investing in Bitcoin and other cryptocurrencies is extremely safe.
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