Planned Devaluation of Fiat

Recently and unfortunately, we witnessed devaluation by Lebanon. The things that happened in Lebanon may not be as sensational as FED interest rates but the reality hurts a lot for those who earn their lives with this fiat money.

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The younger generations may not guess how hard can devaluation hit their lives. Still, I am sure previous generations are aware of the risks, long effects, and destruction in society.

Imagine you are earning 1000 bucks worth of fiat currency. You have the opportunity to secure your purchasing power as much as you can save after your expenses. When the governors and central banks mess things up, your 30 days of hard work will be equal to maybe %50, %25 or %10 of what you were able to make before.

In most cases, planned devaluations or uncontrollable inflation cases result in long-term issues. What’s hilarious in these occasions is that those who mess things up are not suffering from their mistakes, instead, people of these countries have paid for their mistakes for several generations.

This might be the most profound concern of fiat money. The figures that seem as working hard for the next generations’ well-being are experimenting with new things on us.

Gold & Bitcoin to Rescue?

Both Gold and Bitcoin represent more than their innate features. Besides the value attributed to them, they are providing an opportunity for true ownership. No single person, entity or government can inflate or devaluate it as they wish. Their precautions (bans/restrictions) have limited impact for the owners.

It has always been a topic discussed among crypto groups if Bitcoin can be seen as digital gold. I believe there is no longer such discussion over the profile that Bitcoin has in the eyes of people.

There are many crypto investors in developing countries who think that rather than watching their purchasing power melt slowly, putting their money into the top 10 cryptocurrencies is a better option. Even the popularity of this way of thinking signs some fundamental problems.

Lebanon evaluated the life quality, purchasing power, and hopes of the Lebanese people by devaluating the fiat currency. This phenomenon is not limited to the digits in the banks, instead, a traumatic experience for the local people.

Lebanon will adopt a new official exchange rate of 15,000 pounds per U.S. dollar on Feb. 1, central bank governor Riad Salameh said, marking a 90% devaluation from its current official rate that has remained unchanged for 25 years.

First, spoil the harmony in the economy with inflation and lack of trust, then run the sentiment of the free market economy. Terrible.

A paradigm shift is in the corner whether some parties want it or not. As individuals, it is our biggest responsibility to secure our life quality.

Posted Using LeoFinance Beta



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The truth you have said is those that who make these policies don't feel the pain because probably they have enough to themselves.

Those that already embraced crypto in the country will not feel much of the impact

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