Lebanon is back in the news as conflict intensifies in the Middle East. Before these latest developments, Lebanon had already become a symbol of how quickly a seemingly stable society can slide into chaos.
If you follow major events in the global economy, you may remember that Lebanon’s recent past serves as a vivid example of what a complete currency collapse looks like in a modern, advanced economy. While there are some Great books Describing hyperinflation in detached academic terms, what we often miss is the human story – what it actually means to be an ordinary, productive person with a family and a bank account, and to live as your country’s currency collapses.
For some time now, I have known my friend Tony Yazbeck, one of the founders bitcoin method, I have witnessed this reality. But it wasn’t until I watched This interview With him, I realized how valuable his story is that everyone should hear. Tony’s story offers a rare personal glimpse into what it’s like when your country’s banking system collapses, when you lose access to your savings, when food prices rise 10-fold in the space of a few months, and when basic necessities like medicine and fuel become luxuries.
I asked Tony if he could explain not only why Lebanon collapsed, but also how Bitcoin could be a lifeline in such a dire situation.
Lebanon: a country on the brink of abyss
Before its economic collapse, Lebanon was a vibrant, cosmopolitan country, often called the “Paris of the Middle East.” Its economy thrived on banking, tourism and services, making it a bridge between East and West. For Tony, this prosperity was not an illusion, it was his daily life. “My life in Lebanon was exceptional,” he recalls. “I was running three thriving companies and living a luxurious lifestyle. Whether it was the latest cars, the best restaurants, or the best clubs, Beirut had it all.”
However, cracks were forming beneath the surface. Lebanon’s banking sector, once a source of pride, was built on unsustainable practices, and the country was drowning in debt. For years, the Lebanese Central Bank pegged the Lebanese pound to the US dollar at an artificially high rate, creating a false sense of stability.
This currency peg requires constant inflows of dollars to maintain. When those flows dried up, the house of cards collapsed.
In 2019, Lebanese banks began restricting access to savings and imposed informal capital controls without any legal framework. “Overnight, people lost access to their money,” Tony says. “You couldn’t withdraw your own money, and even if you could, the Lebanese pound was losing value quickly.”
For those who are not familiar with the currency crisis, a reduction in bank withdrawals is one of the first signs of a system failure. The government and banks are trying to delay the inevitable by looking at the lived experience of hyperinflation in Lebanon. By then, it’s too late.
From thriving businesses to $70 on hand
In early 2020, Lebanon defaulted on its foreign debt, and the value of the Lebanese pound fell. Hyperinflation began to destroy the purchasing power of ordinary people.
Tony watched helplessly as his savings evaporated and his business collapsed. “I went from being a successful businessman to having just $70 to my name in what seemed like the blink of an eye,” he recalls. “I couldn’t pay rent, school fees, or even basic groceries.”
Hyperinflation took hold with shocking speed. “A loaf of bread that was previously priced at 1,500 Lebanese pounds rose to more than 30,000 Lebanese pounds within months,” Tony explains. Fuel prices were even worse. “In early 2023, the price of a gallon of gas rose from 25,000 Lebanese pounds to more than 500,000 Lebanese pounds in just a few weeks. It was impossible to keep up with prices.”
The destruction was not limited to material wealth; The psychological toll was enormous. Tony describes the anxiety and panic that came with watching his hard-earned success disappear. “For the first time in my life, I didn’t know what to do. I felt completely helpless.”
Divided civil society
With the collapse of the Lebanese currency, its social fabric collapsed. Suddenly, people who lived comfortable, middle-class lives found themselves struggling to survive. Basic goods became scarce, and the prices of everyday items rose dramatically.
Power dynamics within communities have changed with those who control basics such as food and fuel gaining disproportionate influence. “There were reports of gangs taking over neighborhoods, controlling access to goods and demanding protection fees,” Tony recalls.
Even electricity has become a luxury. With the national grid in chaos, most people were forced to rely on private generators, but the cost of running them was astronomical. “Monthly generator fees jumped from 200,000 Lebanese pounds to more than 4 million Lebanese pounds,” Tony explains. Many families were forced to live without electricity for long periods of time.
In response to the crisis, people turned to alternative forms of exchange. Barter became popular, as people traded goods and services directly. “If you can’t pay cash, you might offer plumbing work in exchange for groceries,” Tony says. The US dollar, which was widely used before the collapse, became the default currency for many transactions. Cryptocurrencies, especially stablecoins like Tether (USDT), have also gained traction as people have sought ways to preserve value outside of the collapsing banking system.
What it could be: Bitcoin is a lifeline
As Tony recounts the collapse, big questions loom: Could this have been prevented? Or at the very least, could individuals have protected themselves better? For Tony, the answer is clear: yes – with access to Bitcoin, many of the worst effects of the crisis might have been avoided.
“If I had known about Bitcoin before the crisis, it could have saved me,” Tony says without hesitation. “Bitcoin could have given me a way to store value outside the banking system, which had completely failed. I could not have been deprived of my own savings, and I could have preserved my wealth as the Lebanese pound collapsed.”
Bitcoin is immune to the kind of capital controls that Lebanese banks imposed in 2019. No government or bank can freeze your bitcoins or restrict access to them. In a country where the banking system had become a trap, Bitcoin could have provided a way out.
Even as the Lebanese currency lost more than 90% of its value, Bitcoin maintained its purchasing power globally. “Bitcoin is not tied to any government or central bank, so it cannot be manipulated as happened with the Lebanese pound,” Tony explains. “It is a hedge against hyperinflation, which would have been crucial when prices were tripling every few months.”
Bitcoin status k Digital bearer assets It will be equally important. “When cash becomes worthless and banks stop working, how do you pay for things? How do you trade?” Tony asks.
In Lebanon, barter and informal exchanges became necessary for survival. In many cases, Bitcoin may have served as a practical alternative to barter, the worthless Lebanese pound, and the hard-to-obtain US dollar.
Lessons for the world
The Lebanon crisis represents a stark warning to the rest of the world. Although many people in developed countries believe that their economies are too stable to collapse in this way, Tony’s experience should give us pause. “What happened to me could happen anywhere,” he warns. “Do not think that you are immune just because you live in a so-called stable country. The mechanics of dealing with paper currency are the same everywhere.”
Tony points to the United States as an example of that country Walking on the same dangerous path Like Lebanon. “The US national debt now exceeds $35 trillion. Since 1971, when the dollar was taken off the gold standard, the money supply has increased by more than 8,000%. This type of money printing cannot continue forever.”
Although the United States benefits from being the issuer of the world’s reserve currency, this situation is not guaranteed indefinitely. “All fiat currencies eventually go to zero,” warns Tony. “Some will fail sooner than others, but they will all fail. The US dollar may be the last to go, but its turn will come.”
The lessons from Lebanon’s collapse are clear: protect your wealth before a crisis hits, and don’t assume that your government or banking system will be there to bail you out when things go wrong. For Tony, this means turning to Bitcoin. “Bitcoin is the only asset that can’t be truly confiscated,” he says. “It’s the only way to escape a broken system.”
New mission to rebuild with Bitcoin
In the wake of Lebanon’s collapse, Tony dedicated his life to helping others avoid the same fate. Founded bitcoin method, A Bitcoin educational and technical services company designed to teach people how to use Bitcoin to protect themselves from currency crises. “The crisis forced me to study and understand money,” says Tony. “I realized that the monetary system is a scam, designed by thieves to rob us and control us. Bitcoin is the solution.”
Every day Tony educates his clients on how to take control of their financial future with Bitcoin. “Once you understand how Bitcoin works, you see the flaws in traditional fiat systems,” Tony explains. “You learn how to securely manage your assets, conduct transactions independently of banks, and protect your wealth from inflation and economic instability.”
The road ahead
Tony believes that the collapse of the Lebanese pound was avoidable, but that would have required structural reforms that never came. He says: “If Lebanon had addressed corruption, maintained transparency, and adjusted the currency peg responsibly, things would have ended differently.”
But given the deep-rooted corruption in Lebanon’s political and financial systems, collapse was almost inevitable.
As Tony reflects on his experience, he sees similarities between pre-crisis Lebanon and the current situation of many advanced economies. “We are seeing the same issues – rising debt, unsustainable monetary policies, and corrupt institutions,” he says.
The warning signs are there, but many people ignore them, thinking their country is somehow different.
For those paying attention, Tony offers practical advice. “Start educating yourself about Bitcoin now, before it’s too late,” he urges. “Diversify your assets and do not rely on fiat currency to maintain your wealth. The mechanisms of hyperinflation do not change just because you live in a rich country.”
Lebanon’s collapse is not just a cautionary tale for people living in developing economies. It is a wake-up call to the whole world.
As governments continue to print money at unprecedented rates, the risk of a global currency crisis is increasing. Bitcoin offers a way out – an inflation-proof alternative that can protect people’s wealth when fiat currencies fail.
Tony’s experience is a stark reminder of the fragility of paper-based systems and the importance of financial sovereignty. “With Bitcoin in your custody, you have the ability to protect yourself from corruption, manipulation and inflation,” Tony says.
“You don’t need permission from a bank or government to manage your own money. This is exactly what makes Bitcoin the ultimate tool for financial freedom.”
This is a guest post by Dave Birnbaum. The opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.