Lebanon is back in the headlines as the conflict in the Middle East escalates. Before these recent events, Lebanon was already a symbol of how quickly a seemingly stable society can descend into chaos.
If you follow major events in the world economy, you will probably remember that the latest in Lebanon serves as a clear example of what currency collapse looks like in a modern, advanced economy. Although there are good books that explain inflation in different terms, in terms of education, what is often missing is the human story – what it’s really like to be a normal, productive person with a family and a bank account, and live with your account falling. country’s currency.
I have known for some time now that my friend Tony Yazbeck, the founder of The Bitcoin Way, has faced this reality. But it wasn’t until I watched this interview with him that I realized how important his story is for everyone to hear. Tony’s story offers a rare, personal view of what it means when your country’s banks collapse, when you lose access to your savings, when food prices increase 10-fold in a few months, and when even basic necessities like medicine and fuel become luxuries. .
I asked Tony if he could explain not only why Lebanon fell, but also how bitcoin could be a lifeline in such a dire situation.
Lebanon: A country on the brink
Before its economic collapse, Lebanon was a vibrant, populous country, often referred to as the “Paris of the Middle East.” Its economy has developed through banking, tourism, and services, positioning it as a bridge between East and West. For Tony, this prosperity was not an illusion—it was his everyday life. “My life in Lebanon was unusual,” he recalls. “I had three thriving businesses and lived a luxurious life. Whether it was the latest cars, the best restaurants, or the hottest clubs, Beirut had it all.”
But underneath, cracks were forming. Lebanon’s banking sector, once a source of pride, was built on unethical practices, and the country was deeply in debt. For years, Lebanon’s central bank pegged the Lebanese pound to the US dollar at an illegally high rate, creating a false sense of stability.
This currency peg required a constant inflow of dollars to be maintained. When that income dried up, the house of cards collapsed.
In 2019, Lebanese banks began restricting access to savings, putting informal financial controls outside the formal framework. “Overnight, people lost their money,” Tony said. “You couldn’t get your money out, and even if you could, it was the Lebanese pounds that were losing value fast.”
For those unfamiliar with the financial crisis, a bank withdrawal limit is one of the first signs that the system is failing. The government and banks are trying to delay the inevitable by locking dA look at the living experience of going through hyperinflation in Lebanon. his money in the system. By then, it’s too late.
From developing businesses to $70 in hand
In early 2020, Lebanon defaulted on its foreign debt, and the value of the Lebanese pound fell. Hyperinflation began, destroying the purchasing power of ordinary people.
Tony watched helplessly as his savings disappeared and his businesses collapsed. “I went from being a successful businessman to having just $70 to my name in what felt like the blink of an eye,” he recalls. “I couldn’t pay rent, school fees, and even buy basic food.”
Hyperinflation took hold at an alarming rate. “A loaf of bread that once cost 1,500 LBP shot up to over 30,000 LBP within months,” explained Tony. Fuel prices were even worse. “At the beginning of 2023, a gallon of gas went from 25,000 LBP to 500,000 LBP in just a few weeks. It was impossible to keep up with the prices.”
The destruction did not stop at material wealth; the mental stress was great. Tony describes the anxiety and panic that comes with watching his hard-earned success disappear. “For the first time in my life, I didn’t know what to do. I felt completely powerless.”
A broken society
As Lebanon’s currency collapsed, so did its social scene. People who once lived a comfortable, average life suddenly find themselves struggling to survive. Basic goods became scarce, and the price of everyday items rose sharply.
The power dynamics in societies changed as those who controlled important things like food and fuel gained negative influence. “There were reports of gangs taking over neighborhoods, controlling the flow of goods and demanding protection money,” Tony recalled.
Even electricity turned into fun. With the national grid at risk, many people had to rely on private generators, but the cost of using them was astronomical. “The monthly fee for the generator jumped from 200,000 LBP to over 4,000,000 LBP,” Tony explained. Many families were forced to live without power for a long time.
In response to this problem, people turned to other means of exchange. Barter became the norm, where people directly traded goods and services. “If you couldn’t pay in cash, you might as well give up a plumber’s job for groceries,” Tony said. The US dollar, already widely used before the collapse, became the default currency for many transactions. Digital currencies, and stablecoins like Tether (USDT), also gained momentum as people looked for ways to store value outside of a collapsing banking system.
Potentially: Bitcoin as a way of life
As Tony recounts the fall, questions still arise: Could this have been prevented? Or at least, were people somehow better protected? For Tony, the answer is clear: Yes – with access to bitcoin, many of the worst effects of the crisis could have been avoided.
“If I had known about bitcoin before the disaster, it would have saved me,” Tony said without hesitation. “Bitcoin would have given me a way to store value outside of the banking system, which has completely failed. I wouldn’t be locked out of my personal funds, and I could preserve my wealth as the Lebanese pound collapses.”
Bitcoin is protected from the type of financial control measures imposed by Lebanese banks in 2019. No government or bank can freeze your bitcoin or limit access to it. In a world where the banking system became a trap, bitcoin would provide a way out.
Even though the Lebanese currency has lost more than 90% of its value, bitcoin has retained its global purchasing power. “Bitcoin is not tied to any government or central bank, so it cannot be manipulated like the Lebanese pound,” Tony explained. “It’s a hedge against inflation, which would be critical if prices doubled and tripled every few months.”
Bitcoin’s status as a digital bearer asset would be equally important. “If money becomes worthless and banks stop working, how do you pay for things? How do you trade?” Tony asked.
In Lebanon, barter and informal trade were necessary for survival. In many cases, bitcoin may have served as a viable alternative to barter, Lebanese pounds were worthless, and US dollars were hard to come by.
World lessons
The crisis in Lebanon offers a stark warning to the rest of the world. While many people in developed countries believe that their economies are too stable to collapse that way, Tony’s experience should give us pause. “What happened to me could happen anywhere,” he warns. “Don’t think you’re insecure because you live in a so-called stable country. The fiat currency machines are the same everywhere.”
Tony points to the US as an example of a country going down a 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 over 8,000%. That kind of money printing cannot go on forever.”
Although the US benefits from being the world’s reserve currency issuer, that status is not guaranteed forever. “All fiat currencies are going to zero eventually,” Tony warned. “Some will fail sooner than others, but they will all fail. The US dollar may be the last to go, but its turn is coming.”
The lessons of Lebanon’s collapse are clear: Protect your wealth before trouble hits, and don’t assume your government or banking system will be there to save you when things go south. For Tony, that means turning to bitcoin. He says: “Bitcoin is the only asset that cannot be consumed. “The only way to escape a broken system.”
A new rebuilding function with bitcoin
After the fall of Lebanon, Tony dedicated his life to helping others avoid the same fate. He founded Bitcoin Way, a bitcoin education and technology services business designed to teach people how to use bitcoin to protect themselves from financial crises. “The crisis forced me to study and understand money,” said Tony. “I realized that the fiat system is a scam, designed by thieves to steal and control us. Bitcoin is the solution.”
Every day, Tony teaches his clients how to take control of their financial future using bitcoin. “Once you understand how bitcoin works, you see the flaws in traditional fiat systems,” Tony explained. “You learn to manage your assets safely, conduct transactions without banks, and protect your wealth from inflation and economic volatility.”
The way forward
Tony believes that the collapse of the Lebanese pound could have been avoided, but that would have required structural changes that did not happen. “If Lebanon had dealt with corruption, maintained transparency, and fixed the currency peg properly, things would have been very different,” he said.
But given the entrenched corruption in Lebanon’s political and financial systems, collapse was almost impossible.
As Tony reflects on his experience, he sees parallels between pre-crisis Lebanon and the current state of many developed economies. “We see the same things – rising debt, unsustainable fiscal policies, and corrupt institutions,” he said.
The warning signs are there, but many people ignore them, believing that their country is somehow different.
For those listening, Tony offers some helpful advice. “Start educating yourself about bitcoin now, before it’s too late,” he urges. “Separate your assets and don’t rely on fiat money to preserve your wealth. The mechanisms of hyperinflation don’t change just because you live in a rich country.”
The fall of Lebanon is not just a cautionary tale for people living in developing countries. It is a wake-up call to the whole world.
As governments continue to print money at unprecedented rates, the risk of a global financial crisis is increasing. Bitcoin provides an exit – an inflation-proof alternative that can protect the wealth of individuals when fiat money fails.
Tony’s experience is a stark reminder of the fragility of fiat systems and the importance of financial independence. “With bitcoin in your wallet, you have the ability to protect yourself from corruption, fraud and inflation,” Tony said.
“You don’t need permission from a bank or government to manage your money. And that’s 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 reflect those of BTC Inc or Bitcoin Magazine.