How Lebanon's Economic Crisis Highlights Bitcoin's Limitations

News of Lebanese banks shuttering to prevent a bank run was met with predictable enthusiasm from the global bitcoin commentariat.

People in Lebanon can no longer send foreign currencies, mainly dollars and euros, abroad. Further, due to heavily restricted banking access and limited liquidity provided by established grassroots networks, most Lebanese civilians also struggle to acquire bitcoin.

A stark disconnect between daily bitcoin users and the rest of the populace continues in a region plagued by economic and political conflict.

"Bitcoin will not help the people. It will help the politicians because they are the filthy rich ones who have access to money," one anonymous bitcoin trader with family in Lebanon told CoinDesk.

Most bitcoin exchanges don't serve Lebanese users.

Sources say bitcoin buyers are mindful to only list "Digital goods," not cryptocurrency, in any paperwork or digital messages related to buying bitcoin from Lebanon.

To make matters worse for prospective bitcoiners, the rare exchanges serving Lebanese bank accounts price bitcoin purchases in dollars.

Due to rampant inflation of the Lebanese currency, buyers are offered a pittance in bitcoin for their fiat, sources on the ground tell CoinDesk.

Despite all these hurdles, the anonymous trader is still advising Lebanese friends to find a way to buy bitcoin as they warily eye the threat of stricter capital controls on the horizon.

Askar is even more optimistic about bitcoin's prospects in Lebanon.