It has not come as a surprise for the high demand for bitcoin in Lebanon but the sudden skyrocketing is entirely different. There is so much demand in Lebanon that traders on Local Bitcoin are asking for as high as $15,000. Currently, bitcoin is trading at half that price for the rest of the world
Al Jazeera had reported the rising demand for cryptocurrencies in Lebanon in February but the prices had not spouted this ridiculously. Right now the price is catching up to these high demands.
How the $15,000 in Lebanon will impact bitcoin
Right now the reason for the high demand for bitcoin has been as a result of the collapsing economy of the country. People looking for a different potable and reliable way to assure their wealth remains intact are opting for bitcoin.
The rest of the world is currently facing a similar dilemma. Covid19 has become the world’s greatest concern and as a result, businesses have closed down. The crisis is drowning the economy at a faster rate than people can handle.
In such a situation inflations start increasing bit by bit. This is triggered by governments pumping more money to the economy such as the recent stimulus injection. In a different world, this is would not affect the economy but naturally, you cant create wealth. The value of each cent in a country drops and as a result and that’s where bitcoin comes in.
In earlier days people used to buy gold but the potability aspect of bitcoin has made the alternative for most people. Afterall getting bitcoin or selling it is much easier than it is with gold. At some point, the rest of the world will join Lebanon. Considering bitcoin is limited and can’t be printed more like money, demand will be too high to handle. This is where the law or demand will apply and bring prices high every day until the economic crisis is over.