[2017-11-14] BTC Trading for $12.5K In Zimbabwe

[Terraformer]

Bitcoin is trading at a huge premium on local Zimbabwean exchanges, as the embattled country struggles through another bout of hyperinflation. At press time, BTC was selling on the local exchange, golix.com, at $12,500. The substantial premium - nearly double the price in the US - is likely connected to the difficulty in obtaining access to other international exchanges.

The country has been in the news in recent years for its massive levels of inflation, often creating situations where locals are forced to carry entire backpacks of Zimbabwean dollars to the market for some simple groceries. In an economy where such inflation rapidly devalues whatever funds consumers have an externally fixed currency like Bitcoin creates a stable and usable marketplace where none existed before.

Creating new markets

Market forces in nations with weak or very weak fiat currencies are driving prices for Bitcoin, as tens of thousands of new users capitalize on the ability to exchange goods and funds in a simple and clean way.

Obviously, the market at this stage represents an arbitrage nightmare, depending on which side of the transaction a consumer is on. However, the clear use case should give hope to Bitcoin bulls, looking to see the price increase to higher levels.

https://cointelegraph.com/news/btc-trading-for-125k-in-zimbabwe

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[marckenigsberg]

This makes a trip to Zimbabwe seem very appealing.
Double your bitcoin

[marckenigsberg]

I'm just thinking about this.
5.6 bitcoin would be a million South African Rand at that price.
Crossing the border and carrying that much cash is pretty much a death wish. *gulp*

[CyberKuro]

Another news about it;
Bitcoin in Zimbabwe is more expensive than anywhere else in the world. But even by the developing nation’s usual standards, the current dollar price is eye-watering, with BTC touching $13,500 at Zimbabwe’s only exchange. The cause for the sudden spike is easy to attribute: with tanks rolling through the capital Harare and President Mugabe nowhere to be seen, the country is in meltdown. https://news.bitcoin.com/bitcoin-hits-13500-in-zimbabwe-as-tanks-roll-through-the-capital/
This is one of many bitcoin utilities as decentralized currency, its price driven by community trading volume (demand) due to bitcoin advantages, seems become the one as alternative currency or an asset to store your wealth. It become the best currency in which the economy collapsed, just like in Venezuela or Zimbabwe.

[Irvinn]

We need experience with the participation of crypto currency in various situations, like the situation in Zimbabwe. The only bad thing is that in this country there is almost only one exchanger operating, which also inflated the price of bitcoin. It would be interesting how the impact of the Crypto-currency on the economy of Zimbabwe with its hyperinflation, if its population could go to many international crypto-exchange exchanges. In the meantime, the increase in demand for bitcoin in one country, I think is abnormal, something that inflates the inflation of bitcoin itself.

[marckenigsberg]

Zimbabwe is a classic example of where people were screwed by a despot.
And it was such a rich country to start.
At least there is bitcoin now and some people are getting accessing to it