In the past week, several countries’ fiat currencies have spiraled out of control. Specifically, the Lebanese Pound and the Argentinian Peso have both faced a massive drop in currency values.
The Argentina situation before the pandemic was pretty bad as the South American country had been in a three-year recession before the coronavirus struck.
A few days ago, Lebanon’s national currency became roughly equal to 1 Satoshi. The Lebanese pound has lost more than 50% of its value and last week’s riots were already underway.
The emergence of the two situations led to a discussion on the cryptocurrency subreddit about the performance of cryptocurrencies in the face of the rapid rise in inflation.
As for Lebanon, reports coming in designate that the absence of Bitcoin ATMs has led to an increase in peer-to-peer trading in the country.
Another great thing that the Lebanese have working for them is the fact that a greater percentage of the citizens have dual nationalities.
There has been a significant increase in the acquisition of cryptocurrencies by civilians.
On the side of Argentina, it remains unclear if a majority of its residents have taken to adopting cryptocurrencies.
It is highly likely that Argentines will increase their use of cryptocurrencies as the economic woes are expected to advance from bad to worse according to a monthly central bank poll.
The world continues to reel from the effects of the COVID-19 pandemic. Several economic bubbles that grew before now would eventually rupture. The continuous pumping of money into the markets in the name of bailouts could prompt monetary crisis to escalate.
One Redditor noted that the lines to Bitcoin ATMs doubled when the Russian Ruble was depreciating due to sanctions by the Obama administration in 2016.
The same thing could occur across the globe should inflation blowback hit more countries.