Lebanon's banks can't hold on? Cryptocurrencies are taking over traditional financial systems

Bitcoin supporters are currently heavily encouraging Lebanese citizens to convert their fiat currency into cryptocurrencies after banks in the country have closed. This news has sparked a discussion within the community, questioning whether, like during financial crises, Bitcoin is more trustworthy than banks.

From an ongoing Twitter debate since 10/24, this commentator representing angry Lebanese citizens wrote:

"Lebanese banks have been closed for nearly a whole week and Bitcoin is no longer a quick way for us to get rich, but a free way to transact."

Following the start of unrest in Lebanon, banks across the country shut down, with a senior banking executive stating that this situation will continue until conditions improve. This means our existing system is unusable, no transfers or withdrawals, salaries cannot be accessed... etc., affecting the population significantly.

Data shows that around 65% of Lebanese have bank deposits, with two-thirds of personal funds in the country being cut off.

Renowned Lebanese statistician and author of "The Black Swan," Nassim Nicholas Taleb, suggests that government policies are sufficient to directly endorse cryptocurrencies such as Bitcoin. In a tweet, he stated:

"When you need a bank, the bank is never there. They are trying to bully the public to avoid accountability and profit-cost. In short, they are legal crooks."

Using Hong Kong as an example, the situation there should speak for itself. When a government cannot ensure the safety of people's property, the value that cryptocurrencies hold becomes apparent.

In the replies to that tweet, we can see many people sharing this image, although it is clearly satirical, it is not entirely impossible, is it?

Further Reading

• Over 40% of the blockchain industry works in cryptocurrency exchanges, followed by mining equipment manufacturers
• The smallest unit of Bitcoin, "Satoshi," has officially been included in the Oxford English Dictionary

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