Bitcoin Price Soars To $13,000 In Desperate Zimbabwe

Tyler Durden's picture

We noted in June that Zimbabwe's cash crisis continued unabated.

Those awaiting cash transfers at a bank may wait a month to be cleared and, even then, the transfer may be refused.

The Standard, Zimbabwe’s leading Sunday newspaper, ran an article at the time entitled, “Black market thrives, as banks run dry.”

Some highlights from that article:

HARARE’S Road Port has become the unofficial bank of last resort, never short of cash, no queues and a multicurrency platform. The money market at this busy bus terminus now plays the role that the formal banking sector has failed. It is effectively making a mockery of the Reserve Bank of Zimbabwe (RBZ).

This points to the nature of black markets. They thrive based upon fulfilling an existing need, not upon government control. They therefore replace whatever services the official market fails to provide.

“Top government officials, supermarket owners and service stations were behind the thriving black market, which is never short of cash.”

And now it appears many Zimbabweans have found an alternate way to store/transfer wealth away from Mugabe's prying (and confiscatory) eyes.

In September we noted the hyperbitcoinization occurring in Zimbabwe. In October, Zimbabwe demand started to impact the global price of the cryptocurrency, and two weeks ago we noted the doubling of the price of Bitcoin in Zimbabwe as uncertainty about the nation's stability sent citizens into a decentralized currency that was out of Mugabe's reach.

image courtesy of CoinTelegraph

Now, after the military coup confirms the average joe's fears, Bitcoin is trading at over $13,000 on Zimbabwe exchange Golix - a premium of over 80% over the USD exchange price as demand surged.

 

And the order book is full...

Bloomberg reports that demand for bitcoin in Zimbabwe has surged amid a shortage of hard currency.

Golix processed more than $1 million of transactions in the past 30 days, compared with turnover of $100,000 for the whole of 2016, according to data on the exchange’s website.

Zimbabwe doesn’t have its own currency, with the government adopting the U.S. dollar and South African rand, among others, as legal tender in 2009 after hyperinflation rendered the local dollar worthless.

According to a local trader, bitcoin isn’t just being bought by individuals, but by businesses with bills to pay.

Bitcoin, as every bitcoiner would expect, is helping people in the country survive times of economic uncertainty, as Zimbabwe has been embroiled in a crisis for years.

*  *  *

As CoinTelegraph noted previously, Zimbabwe is beginning to act like an interesting case study for what happens when a country begins to collapse around its monetary system - it is also being witnessed in Venezuela.

Moving money out of Zimbabwe is starting to become impossible, and as people try and flee monetarily out of the crumbling state, they are finding refuge in Bitcoin.

Soon, banks in Zimbabwe have stated that Visa debit cards would no longer be usable for international payments without prior arrangements and pre-funding with hard currency.

“You will be required to make prior limit arrangements with the bank,” Stanbic said in a message to depositors last week.

Econet Wireless has also stopped foreign payments on its MasterCard linked EcoCash mobile money debit card.

Bitcoin as a refuge

Because of the decentralized nature of Bitcoin, there is no impact on it from this political upheaval, in fact, it is only benefiting from it. The Bitcoin premium of almost 100 percent is not because of the political issues, rather the high demand surrounding worry of collapse.

Bitcoin again shows its potential and power when the banking system again shows its potential for mass collapse and hysteria.

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Raffie's picture

SWEET!!!!!

Expecting to see over $13k btc in spring 2018 here.

balz's picture

I prefer my tulip bulbs. At least you get a flower.

Raffie's picture

Yup Bitcoin you only get money.... a flower is MUCH better than money and profits.

Enjoy your garden.

balz's picture

Nope, Bitcoin does not get you money. It gets you nothing more than what you paid for, except if you are SPECULATING that someone is wishing to buy it from you at a higher price. Tulip bulbs worked the same way.

Raffie's picture

So I bought btc at $900 and its over $7k yet if I cash out I get nothing but $900?

You're a funny little squirrel aren't yet?

Odd that no matter what you spin doctors say my wealth keeps going up.....so weird...its like your nonsense has no effect on the real world.

 

balz's picture

You still get the same bitcoin you bought, which is the same as someone buying a tulip bulb in the mania and selling it later in the mania. It's only speculation. You wish to make money from a greater fool buying it back from you at a higher price.

A bubble makes everyone look like a fool. Before it pops for those who refused to buy, and after it pops for those who bought. Watch and see.

NoCamelCase's picture

Your reasoning is good but you made the mistake of thinking you can equate Bitcoin with tulips instead understaning it is the great invention of mankind comparable to the printing press or Internet.

Gap Admirer's picture

I always follow the lead of the Zimbabweans (tmosley is a close 2nd) when making my investments and/or speculating. Their extensive experience at goat herding and pillaging gives them quite an edge.

QueeroHedge's picture

I acknowledge and respect that zerohedge has made an attempt to provide decent and even positive bitcoin coverage, but still the bitcoin criticism in the comments are embarrassing for a financial news aggregator. Tulips, ponzi? Are you fucking kidding? You are watching the birth of a new asset class, a libertarian goldbug's wet dream, and you couldn't be fucked trying to understand it for five minutes you astute investors? Had you put just 1% of the money you lose on busted shorts every year into bitcoin when guys like fonestar and myself were getting banned here years ago you'd be laughing. 

 

Bitcoin is money that can't be inflated, that can't be touched by goverment or banks, it is a zerohedger's wet dream but very few of us here invested until this year. It isn't too late, if bitcoin survives, nothing is certain, it can only keep going up its current market cap is only 120billion ffs. 5-10% in crypto is a solid investment with obvious chance at retardo level profits, do it now cunce.

GodSpeed_00's picture

If you don't like Bitcoin that's fine but the fact morons like you feel the need to come onto every article about it and say the same stupid shit over and over just shows you're either jealous or just insecure. 

Gap Admirer's picture

I come to the bitcoin articles for the entertainment in the comments sections. Hilarity ensues with the flood of "you're stoooopid" comments.

"No, you're stoooopid."

"No, you're jealous."

"No, you're a moron."

"No, you're a peanutz."

"No, you're ..."

Uh, oh... someone's going to call me stoooopid.

ParticularlyStupidHumanoid's picture

This is amazing. Bitcoin is saving the world from the bankers. LONG LIVE BITCOIN!

QueeroHedge's picture

and yet most zerohedgers believe them akin to tulips and would rather get fleeced by the banks in the stock market. Don't worry oldbugs, your shorts are coming in any day now! Look, another 'not since 2008 has this happened' article on zerohedge! It's going down this week surely.

btClunker's picture

A cell phone from ten years ago is the same as one today.  Why do people keep buying them?

IH8OBAMA's picture

Nah.  Bitcoin is fine.  Until ........... B-Day.

JimmyJones's picture

Tulip bulbs can be created bit coins have a finite number that will ever exist. Both of them are subject to speculation but every thing is. They are not the same. It's a poor analogy. 

balz's picture

What? Would you prefer if I choose the Nasdaq in 1999 as an analogy? You buy companies with no revenues in the hope that someone will buy them back from you at a higher price.

NoCamelCase's picture

Yes, Nasdaq is a much better analogy. After a dotcom bubble the stocks fell like what 70%-90%? Today some of those best tech stocks are making all time highs with multiple increases in price compared to the top of the bubble. It could very well be the same with Bitcoin (& other good crypto + shitcoins never recovering). If you look at the long term Bitcoin is still a buy even at these lofty prices. What's more, the Bitcoin price doesn't even matter - the technology is already a success and is here to stay the same way as the top tech stocks during the dotcom bubble.

MagicMoney's picture

Long term? No. You are not acknowledging the forces that are are propping up Bitcoin. The same forces that created the asset bubbles. The reality is Bitcoin is a speculatory mania created by central banking. We don't know exactly what the Federal Reserve will do as opposed what they are saying but if Fed is going to reverse back toward normalizing monetary policy Bitcoin I think is going to be crushed. I mean smashed..... I think it is a much more sensitive than people let on. People are going to sell when they are better allocations. Be careful now because when people buy together they can also sell together.

btClunker's picture

I disagree and have been winning that bet since 2013. If your not in the game what are you so worried about?

kochevnik's picture

USA is tiny part of world finance

Spaced Out's picture

You are missing a very important point......the Fed CANNOT reverse course and normalise monetary policy without bringing about the very financial collapse that bitcoiners are hedging against.

USA USA's picture

Stupid....Open your mind, if you can find the key.

Raffie's picture

She has gotta have a mind 1st to open it. 

Maybe she is the world's 1st living brain donor. 

Just saying. 

USA USA's picture

Yea, you can stick them up your ass and you won't need toilet paper!

HRH of Aquitaine 2.0's picture

Lots of Dutch still make money from tulip bulbs. I cleaned the house of a rich Dutchman years ago. I am not sure how many acres he had under production but he had plenty. Along with greenhouses. Nice farmhouse, nice wife, beautifully appointed interior. Made enough money to hire a white housekeeper.

ShorTed's picture

what about gold, silver, heirloom seeds, bullets and booze...I thought they were gonna be the go-to when the shtf?

Who'da thunk?

Raffie's picture

Your basically talking about prepper items and the article is about cryptos. So was only talking cryptos.

I stack silver as well, even though I don't see much gains for a very long time.

Don't forever suppressors, subsonic ammo and night vision on your list. Female hygiene items will fetch a big money as well and are often over looked as well as toilet paper. 

 

Consuelo's picture

 

 

Huggies wipes.

 

The most asked for item from troops (even above air conditioners) during the Iraq fiasco.

 

 

Raffie's picture

An baby products....

I don't hope for SHTF to see PM sky rocket up because life will be so miserable for most people. Will be a Mad Max world for sure.

IH8OBAMA's picture

Raffie, the new tmosley for the Bitcon.   You gotta love the rotation.  LOL

Raffie's picture

I like cryptos and silver.

Not my fault if you gotta have someone to hate because it is all you know. Your mindset seems kind of 'hurt them before they hurt you'. True signs of a bad childhood. I'm sorry for you.

Lets see, my stacks of silver still pretty, but under the price I bought them at years ago.

Cryptos have great gains and still growing.

So why not be happy for me? You that mad and upset with people who are involved with cryptos that make profits?

Seems pretty self centered of ya.... but whatever.... 

RAGE ON H83RS!

HRH of Aquitaine 2.0's picture

Same here. I don't understand the hate.

My silver is safe and sound. Still shiny in tubes and those 100 ounce RCM bars.

BTC is back up to where it was last week. I expect BTC $10K at the end of January.

I like the idea discussed by another poster of giving away Trezor or Nano wallets to grandkids / nieces / nephews as gifts. Smart!

robertocarlos's picture

SHTF, nukes fly, you won't need shit.

Raffie's picture

I got currency for every situation and items for almost every event including nuclear.

Why does the argument always come to EMP, nukes when cryptos are mentioned? Kind of odd huh?

 

Consuelo's picture

 

 

SHTF has not happened yet.   And wish that it doesn't, because it won't spare anyone.

 

 

813kml's picture

Zimbabwe is tmosley's new retirement destination.

Raffie's picture

Venezuela is a disaster and PM and cryptos will buy you a lot there.

silverer's picture

A few months back, right here in ZH they said one ounce of silver would buy three months worth of food there. Not bad. Probably goes even farther now.

Raffie's picture

Yup.

1oz silver would buy 3-6mo worth of food. Not defined to exactly what FOOD that is.

1oz Gold could buy a big house with property.

HRH of Aquitaine 2.0's picture

If you had connections and were willing to toe the party line and kiss butt.

silverer's picture

$20,000 is more like it. Maybe more. It's behaving the way gold would if they didn't manipulate it in the paper markets. But Bitcoin is risky, because it has flaws. Mostly due to its technical nature. Invest what you can afford to lose, and cross your fingers.

NoCamelCase's picture

what flaws? it is prudent to diversify with other quality crypto, nobody smart buys just Bitcoin

Raffie's picture

Also you can invest into cryptos and when you feel you have enough profits take out your inital investment and let the profits play out if you like.

Hence reducing the risk factor by %100.

Implied Violins's picture

At least the Zimbabwe currency had pictures of dirt on it. That's SOMETHING.

ali-ali-al-qomfri's picture

that's not a picture of dirt, that is shit.

ass-wiped shit stained paper, all that paper is good for.

 

 

robertocarlos's picture

I once washed a CDN 5 dollar paper note by accident. It came out clean as a whistle. It was not used as TP though.

silverer's picture

Not good for that, either. Clogs pipes. Maybe wallpaper for a doghouse.