on the crypto
MicroStrategy CEO Michael Saylor backed bitcoin (quotation BTC in real time) as a solution to the ongoing financial crisis in Lebanon.
Its support for cryptocurrencies is commendable
In a tweet posted on June 13, the entrepreneur said: "If you fear that the government may devalue 90% of your life savings and seize your dollars, #bitcoin solves this problem."
This comes amid reports that Lebanon's official currency, the Lebanese pound (LBP), plunged to a new low on June 13. Reuters says that at that point the LBP was trading at 1.515 against the US dollar (USD). A drop of around 90% in its value at the end of 2019.
The country's financial collapse is happening in tandem with a fierce political stalemate. Since his designation in October 2020, Prime Minister-designate Saad al-Hariri has been unable to agree with Lebanese President Michel Aoun on the formation of the government.
Meanwhile, supplies to the country have started to run low. Including medical supplies, as well as foreign reserves that subsidize basic commodities like grain and fuel.
Other voices had already joined this chorus
However, Michael Saylor is not the first to suggest cryptocurrency as a potential solution to the problem. On June 9, a Twitter account called The Democratic Economy, dedicated to "ongoing socio-economic conversations" shared a tweet with the following reading:
“In light of the financial crisis and the collapse of the monetary system in Lebanon, people are looking for alternative systems to banks and solutions to the current crisis. One of the proposed scenarios is the use of digital currencies. What about cryptocurrencies? "
Previous reports have shown that Lebanese citizens were already turning to cryptocurrencies as alternative investments. In some cases, hoping to recover losses during the financial crisis.
Saylor will increase the company's BTC holdings
Longtime BTC advocate Michael Saylor and his company MicroStrategy have significantly increased their holdings in the world's most valuable cryptocurrency this year. At the last count, MicroStrategy itself owns 92.079 BTC. And the company bought more than 20.000 of those coins in the first quarter of 2021. However, Saylor admitted that his total holdings in BTC exceed 111.000.
Recent reports also indicate that MicroStrategy has no plans to stop there. The business intelligence firm announced on June 8 that it had priced its offering of "$ 500 million in aggregate principal of senior secured securities." They previously announced that the bond's price was $ 400 million.
Both Michael Saylor and MicroStrategy have confirmed that the proceeds from these bonds, which are expected to generate approximately $ 488 million, will go towards the purchase of additional BTC.
And what do you think of all this? Can cryptocurrencies really represent a solution to solve the financial problems of the various states in crisis? Let us know in the comments section below.
