Skip to main content

Why Bitcoin Costs Nearly Twice as Much in Zimbabwe as the Rest of the World Right Now

In Zimbabwe, a country where hyperinflation led to $1 being worth 35 quadrillion Zimbabwean dollars, the relative security of cryptocurrency already came at a premium.
The recent military takeover of the capital – which generals insist is not a coup – has made made the problem even worse.
Bitcoin prices have risen 10% to $13,499 on Golix, the troubled nation’s only cryptocurrency exchange.
That figure is nearly twice the $7,000 Bitcoin price on U.S.-based exchanges such as Bitfinex.
The surge has been fueled by Zimbabwean investors seeking a safe haven from domestic banks amid the country’s ongoing political, financial and monetary woes. While Zimbabwe once had its own currency, it began using a mix of currencies from stable economies including the U.S. dollar in 2009 after hyperinflation made its own note nearly worthless.
 
But, as the country’s political situation has worsened, Zimbabweans have continued to hoard money and park it in assets such as Bitcoin — a move that in turn intensifies the country’s lack of hard cash circulating in the economy. Meanwhile, citizens are also worried that the country’s recently introduced “bond note” currency could spur another round of hyperinflation.
Notably, it’s not exactly a deluge of investors flooding into Bitcoin in Zimbabwe. In the last 30 days, Golix has recorded about 146 Bitcoin trades. That’s nearly the same volume traded on the U.S.’s largest exchange Bitfinex every 15 minutes, according to Web Begole at Exante Data.
The low liquidity is also likely causing wide swings in the Bitcoin prices on the exchange. On LocalBitcoins, a peer-to-peer bitcoin platform, some sellers are offering Bitcoin at close to the global average of $7,400.
Curiously enough, despite Zimbabwe’s weak economy, investors have also looked to equities to protect against potential future inflation. In the past year, the Zimbabwe Industrial Index has risen 322%, giving it a market capitalization of about $14.5 billion.

Comments

Popular posts from this blog

How to spend your Bitcoin and Ethereum in South Africa

As Bitcoin and Ethereum gain popularity among investors, an increasing number of users are creating cryptocurrency wallets. The wallets are either hosted through an online provider or stored on the user’s hardware. From these wallets, cryptocurrency owners can make transactions on a blockchain, interact with exchanges and other users, and in the case of the Ethereum blockchain, programme autonomous contracts. Sending cryptocurrency through the blockchain is quick and easy, but using cryptocurrency in lieu of fiat currency is still limited. South African stores and services are slower to adopt cryptocurrencies than more developed countries, but users can still buy products locally with Bitcoin or Ethereum. Stores There is a growing list of stores in South Africa which accept Bitcoin as a payment option – many of which offer the option by allowing users to pay with PayFast. PayFast has partnered with South African Bitcoin exchange Luno to provide users with a way to pay for products or…

Bitcoin in Africa: Insights from the Continent’s Biggest Bitcoin Exchange

Isn’t it absurd that nearly 326 million people representing 80% of the adult population in Africa do not have access to bank accounts? This wretched situation denies countless of people financial freedom in the so-called dark continent. Bureaucratic tenors and economic exclusion inter alia have paved the way for the current phenomenon.

Last year a study of 10 African nations with unusual inflationary ratio had South Sudan registering an unimaginable inflation rate of 295 percent. Egypt had the slightest with 12.30 percent. African governments continue to plunder the riches of the African people through Inflation. This makes it considerably insurmountable for individuals to conserve their resources. Moreover, public sector borrowing has crowded out the efficient private sector that can put credit to good use. The IMF estimates that averagely credit to the private sector is estimated at 30 percent of GDP in Sub-Sahara Africa. CCN spoke to Werner van Rooyen, Head of Business Development …

WANT TO BUY BITCOIN IN SOUTH AFRICA , KENYA, UGANDA, NIGERIA, GHANA OR OTHER COUNTRIES IN AFRICA? SIMPLE.

With the growing awareness around Africa of bitcoin as a crypto-currency, a means of remittance and a creator of wealth, more and more people in more and more countries are looking to buy it, and asking how and where they can buy it.
Purchasing bitcoin is simple. Simply go online and do a search for “Buying and selling bitcoin in South Africa ““Buying and selling bitcoin in Kenya “Buying and selling bitcoin in Uganda ““Buying and selling bitcoin in Nigeria “ or “Buying and selling bitcoin in Ghana“ – you get the idea. To help you though: In South Africa, three of the most common (and trusted) platforms are: www.localbitcoins.com www.luno.com www.bitx.co In Kenya, the most common (and trusted) platforms) are: www.localbitcoins.com www.bitpesa.co