The Lebanese Bitcoin

XRP all time chart captured from coinmarketcap.com

Bitcoin is a cryptocurrency

The Bitcoin is a protocol built on top of the blockchain. In the crypto world every technology built on top of a blockchain has its release white paper that describes its conception and purpose. Here is the Bitcoin white paper. A so called incognito Satoshi Nakamoto has created it and released it in January 2009; till date this person hasn’t been identified.

Bitcoin logo

Trading and Investing

The third pillar that you should be familiar with is trading and investing. The blockchain is a technology. Bitcoin is a cryptocurrency built on top of the blockain and allows digital transactions between individuals peer-to-peer securely. But what is etoro, and what does buying a position of XRP mean, and how did Ripple’s value go from $0 to $3.2 and then suddenly dropped down?

Fiat AKA printed currency

Fiat currency is the name given to the printed currency that is regulated and verified by central authorities, mainly the banks and governments. A fiat currency like the Lebanese Lira is printed and controlled by the central bank. It is also backed up by Gold in order to give it a real value. The LBP currency is pegged by the U.S. dollar. The Lebanese central bank strategy was to stabilize the peg at LBP 1507.5 to $1 since 1997.

Why digital currency?

The banking system has created its own regulations. For example using SWIFT codes as a world wide identifier of banks in order to transfer money. Any digital transaction or electronic payment between banks is subject to fees designated by the banks. Credit and debit cards cost the client a yearly fee. Transactions online using those credit cards are also subject to fees depending on the vendor and the website. ATM withdrawal from different banks or in different countries charge fees as well. The fees have been normalized as a legal cost of the service the bank is providing to his client, since this third-party is responsible of getting your electronic money from point A to point B. Your accounts at the bank are charges file fees and yearly account fees and SMS fees and all kind of services provided by your bank fees.

An interesting example

Before getting into the Lebanese market and why I am writing this story in the first place. Let me give you an example of how the blockchain could be used in a project you’re familiar with.

The Lebanese bitcoin

It’s important to mention that Lebanon is a third world country and is enlisted among the countries that are sanctioned by the U.S.A. (although those sanctions are only against a political party and not against the banking sector). Our banking system is considered insecure where a lot of money laundering happen to the benefit of politicians and terrorist organizations.

Picture of a man in a V for vendetta mask protesting in front of the central bank

--

--

--

Product Manager / Twitter @rabihantoun

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

🔸ALPEX MARKETS WRAP — December 13, 2021🔸

Bitcoin is Not Dropping. A Real Analysis

Hi friends as I’ve been talking to you about CryptoArt.Ai

Binance Labs’ debut! All-Star Team Announces Three Stirring News

World Bank Predicts 3% Gold Price Growth, Expert Says a $3K per Ounce ‘Is More Likely Than Not’

Carnomaly

Secure Storage...

What is Ununifi

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Rabih Antoun

Rabih Antoun

Product Manager / Twitter @rabihantoun

More from Medium

Bitcoin Network is growing, albeit political and economic uncertainty

CryptNo — Why I wouldn’t invest in Crypto or BTC.

First Mover Asia: Bitcoin Tumbles Below $27K Amid Ongoing Inflation Concerns

El Salvador’s President Nayib Bukele Promotes Bitcoin Adoption