[2017-10-20] CCN - Bitcoin Price Nears $10,000 in Zimbabwe Due to a Lack of Cash

[Lucius]

Bitcoin Price Nears $10,000 in Zimbabwe Due to a Lack of Cash in the Country

According to TheNational.ae, bitcoin adoption in Zimbabwe is seemingly skyrocketing as the country’s economic situation looks bleak. So much so, that one bitcoin is trading at nearly $10,000 on the Golix.io exchange, while the global average is, at press time, of $5,642.00.

According to a local trader, bitcoin isn’t just being bought by individuals, but by businesses with bills to pay. The country adopted the U.S. dollar back in 2009 as its fiat currency, as the Zimbabwean dollar had lost nearly all its value.

https://www.cryptocoinsnews.com/bitcoin-trading-at-nearly-10000-in-zimbabwe-due-to-a-lack-of-cash-in-the-country/

This is a very interesting story considering recent history of Zimbabwe,especially from a financial point of view.Because of the wrong decision made in 2000 country agriculture collapsed and banks stay without money which lead to print of Zimbabwe dollar and that is caused hyperinflation.After that they decide to replace their currency with US $ but it work just for some time.The question is, can BTC become solution for them long-term?

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[Kemarit]

I guess this is a similar case for Venezuela now. Both countries are in dire economic problems and a likelihood that a collapse is very imminent. Now bitcoin comes to the rescue. I have seen a lot of reports stating that Venezuela's are using bitcoin to buy their basic needs like foods outside of the country and deliver to them. While in Zimbabwe people are hoarding items like oil and water and now bitcoin. Its like they are using bitcoin as hedge in there economic situations. Their money has no value now as well that's why most of them are putting their money into bitcoin market for somewhat store their money and be safe. This is a new use case for bitcoin, and it really proves that it can also be used as a fence for a country that has been undergoing a lot of economic crisis within.

[acquafredda]

They are going from those mega trillion banknotes to bitcoin, unbelievable. However, it is very important for those business to have invested in bitcoin because that is going to be their best investment in life; I hope people there do realize what a scam the money system is.

[1Referee]

This just shows how desperate the people and businesses there are. I am glad that they have Bitcoin to fall back on, because if that wasn't the case, their problems would end up being far more severe than they right now can imagine. I am quite sure that this is just the beginning, because if the real mass starts doing the same, the price there could easily surpass the western exchange rates by 100-200% due to the lack of supply there. I feel bad for them that they have to go through all of this, especially when you consider that the government is there to be offering them a helping hand, but they don't, the greedy and corrupt montster. I get really pissed by reading such stories.

[Kprawn]

I went through Zimbabwe a while ago for work in Africa and I did not see anyone accepting bitcoins as a payment option. I

used the South African Rand ZAR in Zimbabwe that I exchanged on the airport in South Africa. I think these people will store

their wealth in any other currency other than their own local currency {Zim Dollar}

Bitcoin might be their best bet for a store of value at the moment, because it is not depreciating in value like most of the

other fiat currencies. 

The US Dollar is not as volatile as Bitcoin, so it might be better suited for local merchants as a currency. 

[Lucius]

I went through Zimbabwe a while ago for work in Africa and I did not see anyone accepting bitcoins as a payment option. I

used the South African Rand ZAR in Zimbabwe that I exchanged on the airport in South Africa. I think these people will store

their wealth in any other currency other than their own local currency {Zim Dollar}

Bitcoin might be their best bet for a store of value at the moment, because it is not depreciating in value like most of the

other fiat currencies. 

The US Dollar is not as volatile as Bitcoin, so it might be better suited for local merchants as a currency. 

It is possible that this is the beginning of interests for BTC in Zimbabwe,I am not surprised that you not see any store/service accepting BTC because in much more developed countries it is not easy to find someone to accept BTC.Africa is on this point far behind all other countries,only one BTC ATM all over the continent if the data is correct on this page : https://coinatmradar.com/countries/


American Dollar does not solve their problem since it is not their currency(they can not print US dollar) and they import 10 million $ every week,the question is how long it will work.For ordinary people that certainly does not work and they are turning to BTC.