Bitcoin hits $13,000 on Zimbabwe exchange

[shenxirrwya1582]

http://money.cnn.com/2017/11/16/investing/bitcoin-zimbabwe-price/index.html

Political turmoil and an apparent coup have pushed the price of Bitcoin as high as $13,000 on a digital currency exchange in Zimbabwe -- nearly twice the going rate in global markets.
Demand surged on Golix, which appears to be the only local Bitcoin exchange, after military leaders put 93-year-old leader Robert Mugabe under house arrest.

Bitcoin has long commanded higher prices in Zimbabwe, which scrapped its own currency in 2009 after years of hyperinflation made it worthless.

But the appearance of tanks on the streets of the capital Harare have pushed the price gap even wider. Bitcoin was trading on international exchanges for roughly $7,500 on Thursday.
The digital currency was quoted more broadly in line with world prices in online market places that allow buyers and sellers in Zimbabwe to deal directly with each other.

Related: Mugabe's exit is 'a done deal' but Zimbabwe is still in limbo
Elevated Bitcoin prices in Zimbabwe appear to be the result of the country's dysfunctional economy and mismatched supply and demand.

Since 2009, business in the country has been conducted in a number of foreign currencies, but exchange rates on the thriving black market are highly distorted. Dollars are in short supply, and strict capital controls are in place.

Last year, the country started printing bond notes -- backed by U.S dollars -- in a bid to ease a chronic shortage of cash. But many Zimbabweans worry they are a backdoor to the reintroduction of a local currency that would be doomed to massive devaluation.
"In Zimbabwe, you are very limited with what you can do with the money in your bank account," Golix says on its website. "Bitcoin is better than the money we're using now."

Related: How Robert Mugabe killed one of Africa's richest economies
There is also the problem that local demand for Bitcoin far outstrips supply.
Only 16 Bitcoin have been traded on Golix over the past 24 hours, and 160 over the previous month.

Bitcoins are created through "mining" -- a process in which computers race to solve complex math problem, and winners are rewarded with chunks of the digital currency.
Mining requires huge amounts of electricity, and Golix says that energy prices in the region are simply too high to make the process cost effective.

[avikz]

Yes, I read the same thing yesterday morning. Initially the price was not that high, but after the recent military coup it has started increasing like anything. I believe, it was due to the Mugabe government oppression, the crypto currency market could not open up in their country. Now that military has taken over the control, people are expecting a better governance now. They are expecting new opportunities to open up.

[steadyrice]

That's interesting. Although Zimbabwe should hardly be a legitimate indicator of prices, it is interesting to me that in a country with turmoil, bitcoin is regarded as a legitimate alternative currency.

[magle]

Read the same thing as a headline in some of the big news papers in Denmark. They just forgot to mention in the articles that it was simply one exchange in Zimbabwe. But of cause facts should not come in the way of a good story in mainstream media.

[berlunberg]

As I understand it is almost impossible to work on that exchange outside Zimbabwe. And going there to realize an arbitrage strategy through local banks is too risky.

[vfrcbv911]

Wow, I wish I'd known about it before. It would be possible to make arbitrage trade!

[East7547]

I’ve read conflicting reports that this is true

[Jestb]

Wow, I wish I'd known about it before. It would be possible to make arbitrage trade!

There is one service, I will not throw the link, in Google everything is there