Worst Cases of Hyperinflation: What It’s Like & How To Survive!!

This here is a 100 000 Lebanese Lira note it's the largest Lebanese banknote in circulation and it Is worth just over One US dollar In much of the world inflation has Reached its highest levels in decades in The United States it jumped from 3.2 Percent in 2011 to 8.3 percent in 2022 Similarly in the European Union it was Around eight percent in 2022 up from Three percent a decade prior according To the financial times quote high Inflation remains geographically Broad-based even if it is lower in many Parts of Asia now though inflation has Eased slightly this year you can't shake The feeling that life is just getting More and more expensive but what is it Like in hyper-inflated economies where Inflation reaches not two but three Digits and what role can crypto play in These economies in this video we'll look At crypto adoption levels and Trends Across three of the most hyper-inflated Economies on the planet Lebanon Venezuela and Zimbabwe as recently as Late 2019 when the currency was pegged To the dollar one hundred thousand Lira Was worth 66 USD so just imagine that Imagine all your wealth your savings Your pension is in Lebanese Lira almost Overnight it shrinks to 1 66 of its Value as if that wasn't bad enough banks

In Lebanon have severely restricted cash Withdrawals to avoid Bank runs it's Enough to make an ordinary law-abiding Citizen rob a bank to demand his own Money so where does crypto come into all Of this is it a hedge against this Rampant inflation and is it widely used Well sort of The community of crypto users in Lebanon Is small but highly engaged with an Active telegram group numbering only Around 1600 users the actual number of Crypto users though is believed to be Much higher the Lebanese Lira used to be Pegged to the US dollar and dollars Remain the natural hedge against Inflation moreover buying crypto using a Lebanese bank account isn't possible on Major exchanges like coinbase and Binance and as far back as 2013 the Central Bank banned Lebanese commercial Banks from processing crypto related Transactions nevertheless despite these Obstacles a small number of local Operators have emerged to fill this Gap Including Nader durani who set up the First KY seed cryptocurrency Over-the-counter dealership in Lebanon Nader told my colleague at coinbureau That crypto has provided a Lifeline for Businesses and individuals who can't Access their bank accounts and served as A valuable conduit for remittance Payments is both into and out of Lebanon

Increased adoption of crypto he says can Also be linked to long-established Currency exchanges like MoneyGram and Western Union exchanging remittances Sent from abroad in U.S dollars at the Official Lebanese Lira exchange rate Which is a fraction of the real market Value they have thankfully since stopped This practice perhaps for fear of losing Yet more Grand to crypto meanwhile Another facet of lebanon's crypto story Is mining although electricity cuts are Commonplace a small pocket of the Country next to a hydroelectric plant Has a steady power supply which has Helped spawn a crypto mining Hub now the Activity was not worth it before the Crisis but with the minimum wage at Around 30 USD a month and the large Amount of Lebanese Lira that can be Bought with USD on the black market Mining now provides a steady source of Income in fact it's so prevalent in some Areas and the Lira so erratic that quote Many local businesses now accept payment In cryptocurrency through a digital coin Wallet and just as necessity is the Mother of invention so too is it the Mother of crypto adoption and nowhere is That truer than in Venezuela which faces Many of the same issues as Lebanon Except on steroids Venezuela's inflation Reached an astonishing three thousand Percent in 2020 and since then has been

Merely in the low hundreds in January 2022 the difference between Bolivars and Dollars was five to six Bolivars per Dollar today it is 25. mind-boggling and Devastating crypto has provided a Lifeline to Venezuelans for many years User numbers jumped from a reported 450 In 2014 to 85 000 in 2016 and they Continue to grow according to analytics Firm chain analysis crypto adoption in Venezuela was the third largest globally In 2020 and seventh in 2021 they don't Have data for the country in 2022. this Has spurred wider acceptance of crypto In the country as coin Telegraph reports Entities accepting crypto include the Main International Airport a major Supermarket chain casinos and the Largest cable TV operator You can also pay with crypto at several Fast food chains as well as the obvious Benefits of crypto in a hyper-inflated Economy another reason its use took off Though was the government's surprising Openness to it in 2018 the Venezuelan Government launched Petro a national Cryptocurrency reportedly backed by oil It has since gone the way of many other Cryptos and failed but the support in The underlying technology helped get Crypto off the ground although now it Appears the government is backtracking In early 2023 the government launched a Probe into corruption after discovering

That anywhere from 3 to 20 billion Dollars was missing from petroleos De Venezuela essay the national oil and gas Company The government Department in charge of Cryptocurrency matters yes Venezuela has A Ministry of crypto has become a focal Point of the anti-corruption Investigation and as a result of this Probe many large-scale Bitcoin miners Have been forced to turn off their Operations in Venezuela other crypto Businesses like crypto exchanges and Payment platforms have also paused their Operations leading to losses of millions Of dollars worth of BTC in business Opportunities according to Forbes as Juan Blanco Chief Executive Officer of Bit data a 10-person crypto Miner put it To Bloomberg quote the innocent are Paying for the sins of the guilty now For our final stop on this Hyper-inflated world tour let's turn to Zimbabwe in a 2014 study by Garrick Heilman from the London School of Economics the southern African country Was ranked third behind Venezuela and Argentina in terms of the highest Relative potential for Bitcoin adoption At the time of that study Zimbabwe had Abandoned its inflation ravage dollar Back in 2009 after reaching Incomprehensible levels of inflation 500 billion percent wiping out pensions

Savings and confidence in the currency In its place foreign currencies Including the US dollar and the South African rand were used and continue to Circulate to this day the government Reintroduced the local currency in 2019 But it rapidly lost value again Inflation currently sits at a mere 175 percent yet unlike the two South American countries in heilman study Crypto adoption is lagging in Zimbabwe Part of the explanation is linked to the Government in 2017 the Central Bank Ordered all banks to stop processing Transactions involving cryptocurrencies Calling the likes of BTC and altcoins Quote the currency of choice for money Launderers and other criminals other Reasons include a lack of education and The perception that crypto is linked to Scams indeed as of November 2021 Zimbabwe Republic Police had received 892 complaints related to cryptocurrency Scams and the issue persists just last Month news broke of a crypto Trader in Court over allegations that he had Siphoned off almost half a million US Dollars worth of crypto from wallets he Had set up on behalf of a client it's a Shame many zimbabweans are put off by The scourge of fraud in crypto because There is little doubt that blockchain Technology and crypto offer real Potential to reduce Zimbabwe's economic

Woes let's take remittances as an Example according to the World Bank Nearly 3 million zimbabweans living Abroad contributed just over seven Percent of the country's economic output In 2022 by sending money home however Middlemen often charge 10 to 20 percent In fees This is staggering particularly when you Consider the cost of transacting on Bitcoin using layer 2 protocols like the Lightning network is less than 0.1 Percent indeed the world economic Forum Estimates that implementing crypto Solutions could save the Zimbabwean Diaspora up to 90 million dollars Annually in remittance related fees and Support progress in financial inclusion Going back to Zimbabwe's government Though it would seem that in recent Years they have somewhat changed their Tune about the merits of digital Currencies so much so that they've Issued their own earlier this year Zimbabwe joined other African nations Including Nigeria Ghana and South Africa In introducing National digital Currencies Zimbabwe's gold-backed Digital tokens are a form of electronic Money backed by yep the country's gold Reserves the tokens will be sold through Banks in both local and foreign Currencies initially for investment Purposes and later for transactions the

Aim of the initial is to stabilize the Plummeting currency and offer an Alternative to the US dollar however News reports quote multiple economists Expressing their skepticism of the Digital currency they argue that it will Have limited impact on money supply Growth failed to fully address the Demand for foreign currency and Necessitate broader macroeconomic Reforms to tackle the country's Persistent currency instability or as Former Finance Minister tendibiti put it In other more robust terms quote the Introduction of the goldback digital Currency is a psychopathic exercise in Self-delusion the Zimbabwe dollar has Failed because of the absence of trust In the regime the digital currency will Suffer the same brutal fate that the Zimbabwe dollar faces yup Zimbabwe's Hyperinflation difficulties may stick Around for some time yet And well there you have it folks A Tale Of Three countries and it feels like we Only just scratched the surface of Course we could have looked into other Countries facing hyperinflation like Argentina and turkey which have their Own peculiarities but maybe we'll save That for another day let us know if You'd like us to explore this topic Further also if you live in a country With hyperinflation tell us about it in

The comments what role does crypto play And how do you see the potential for Further crypto adoption and before you Go don't forget to check out our deals Page where you can get the biggest Discounts on the best crypto wallets and Up to forty thousand dollars worth of Bonus airdrops on offer at the best Crypto exchanges link is of course in The description thank you all for Watching and I'll see you again soon [Music]