Bitcoin Soars To Record High Above $8000 After Mugabe Speech

Tyler Durden's picture

With Bitcoin trading at $13,499 on Golix, the chaotic environment in Zimbabwe has spread to the global price of the cryptocurrency driving it beyond $8000 for the first time in history as President Mugabe fails to resign in a national address following the nation's coup.

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 'successful' military coup but failure of Mugabe to resign - as expected - Bitcoin is trading at over $13,499 on Zimbabwe exchange Golix - a premium of over 80% over the USD exchange price as demand surged.

As CoinTelegraph reports, the Zimbabwean army assaulted Harare on November 14 following a week of confrontation with the administration of President Robert Mugabe. According to the army, the move was aimed at preventing an expected violent and deadly civil war in the country. Mugabe has been the country’s head since 1980.

Due to the political crisis, the demand for Bitcoin in the country has skyrocketed to new highs because of a shortage of hard currency. The situation was exacerbated by the lack of national currency in Zimbabwe. In 2009, the country’s government adopted several fiat currencies like the US dollar and South African rand as a legal tender after hyperinflation turned the local dollar virtually worthless.

According to Golix, it has processed over $1 million worth of transactions in the past 30 days, a sharp increase from its turnover of $100,000 for the entire year of 2016.

According to Golix co-owner Taurai Chinyamakobvu, the prices for Bitcoin are determined by supply and demand. The sellers of the digital currency are paid in US dollars that are deposited electronically. The money, however, can only be converted into hard cash at a sizeable discount on the black market.

On November 15, an “electronic” dollar can purchase around eight South African rands, compared with the market exchange rate of 14.32 rands.

image courtesy of CoinTelegraph

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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FreeShitter's picture

Glad I still have a few......

Raffie's picture

I moved from LTC to BTC, keepin a few BTC gonna convert rest to LTC for the moon launch.

nope-1004's picture

Can someone please explain how Zimbabwe has that much influence over the global bigcoin price?  Do we all really believe there's "cash on the sidelines" in Zimbabwe?  Especially, after they've experienced hyperinflation?

You know you've reached peak bubble reasoning when.........

Skateboarder's picture

None of the bitcoin stuff makes sense. How did it go from 4K last week to 8K this week? Four whole fucking thousand dollars and no one bats an eyelid? Youse all crazy, all-a-youse!

Fundurrmentals.

R19's picture

There was an article on ZH about a hedge fund manager that BTFD (Bought the fucking dip) over the weekend on zero volume/ liquidity.   Crypto trades crazy because there is zero volume and it will move big on weekends...

Every time Jamie was calling his daughter stupid for being long BTC, I wish I had the money to load the boat.

Lordflin's picture

Bitcoin is a great buy... cause everyone knows when the major war comes those ones and zeros are going to be flying off the shelves... er... they will be worth their weight in gold... ah... never mind.

R19's picture

I think it's a great concept, but we are in the first pitches of the ball game.

In a SHTF or WROL scenario food, water, basics, and cash and metals.  But the notion that precious metals investors have that they can just reach out and do business in hell with their gold, etc. without a pack of extremely viscious new friends tracking them in their sights is quite the joke.

CH1's picture

If action from Zimbabwe drives Bitcoin higher, then the upside of this thing is staggering.

BaBaBouy's picture

Freeking Strange Whirld ~ ~ ~

"Bitcoinz and Mugabe" In Bed ...

eforce's picture

ZH newsdesk: "Bitcoin went up, find an item of news to attribute as the cause so we have an excuse to make another article".

malek's picture

You mean "to infinity and beyond"?

They have to be careful not to create a black hole...

Food Loaf Junkie's picture

Not those of us that live in the real world.  In the aftermath you go about discreetly and well armed.  Metals to be only used as a last resort after offering plastic, then paper, then clad coin paperweights.  Only then do you reveal "a little silver, a little gold, what did you bring me my good friends, to keep me from the gallows cold"  :-)

R19's picture

Like that, but remember for every very smart and skilled person with plans there are a lot of dumb ones.  The topic can go on forever.  I'm in LA so I am screwed to the nth.  Can you imagine the LA with a Hollywood overlay in major SHTF?

R19's picture

Sick!  All it takes is one killer set and I think I could make it from Venice Beach all the way down to Baja!

Lordflin's picture

To be honest R19, I don't much care whether I survive this descent into nightmare or not... I know my ultimate destiny, and I have seen as much of this rock as I really need too.

I am still a productive guy... raised productive kids... guess we will just see how this thing plays out...

R19's picture

I missed my life.  If I had to do it all over I would have gone straight to Hong Kong/ Macau and hopped all throughout the Asia from Japan down.  PAR-TAY.

CH1's picture

I am still a productive guy... raised productive kids...

Please understand that I'm saying this in the utmost sincerity:

Rather than waiting for the inevitable, please get involved with cryptocurrencies. We very much need experienced, solid, productive people. This is a better world forming in our midst, and we need people like you.

malek's picture

I think I also fall into that category.

I took a hard look at Bitcoin and it was rather easy to see the shortcomings and decide against it...

CH1's picture

$500. to $8000. in a couple of years covers a LOT of shortcomings.

malek's picture

But if the only thing you care about is the gain -fuck any real fundamentals-, then why do you need "experienced, solid, productive people" for it?

kochevnik's picture

Supply and demand are fundamental.  

malek's picture

That also applies to Ponzi schemes, before they crash.

ThePhantom's picture

so reality doesn't make sense? have you looked at the lifetime graph of bitoin? it just hit the public conscoiousness ... we're not the public they are....look at the graph. Im up 20% in 20 days. again go look at the graph and then KNOW the public is just barely waking up to this...and then think to yourself.. black friday shopping. or somehting along those lines.. you ain't seen hyperbitcoinization nothing yet

Bay of Pigs's picture

Zimbabwe has almost nothing to do with BTC. No evidence at all to support that claim.

The country and its people are flat busted broke.

vato poco's picture

Mugabe is daring the army to take him out and shoot him. I don't see why he's still alive: typically in affika, daring someone to shoot you will get you shot right quick

Raffie's picture

So how does 'inflation' hit bitcoin exactly?

Supply and demand I could see.

nope-1004's picture

The article is alluding to the fact that the ppl of Zimbabwe are pushing the price of bigcoin up.  If they've experienced hyperinflation and they need more ZIM dollars to buy food, how many are truly buying bigcoin?  My point is, once hyperinflation hits the local currency, exchanging it to bigcoin or gold or anything at that point is too late.

The article would make much more sense if a year ago it announced that bigcoin was rising in price and demand due to future fears of hyperinflation in Zimbabwe and Venezuela.  Now though, it's too late.  The current rise in price is nothing but pure speculation.

 

CH1's picture

The current rise in price is nothing but pure speculation.

So they've been saying since 2010. Bitcoin is simply better currency. People want it.

qwertyFUBAR's picture

You're being too kind to The Article.  With its token mention of Mugabe and clever illustration of the money bales and the clumsy Photoshopped sign, you don't realize at first that there are people on Earth who don't recognize Photoshop right off.  They're skimming the article and if they lack the full 30 seconds it takes to conclude that NOTHING is being reported, there are NO real connection except the VAGUE DUH that hyperinflation is present.   it's a news masturbation item. But its target is people who are reading impaired or have less than 30 seconds.  They will break off with the cloudy idea, "There is a BTC/ZIM connection. Things are happening".

"Tomorrow we want an article with lemurs and Bitcoin." 

Bitcoin is the new Iraqi Dinar ReValuation scam.  A continuous supply of 'fake news' and 'fake insights' as more people pile into the base of the pyramid.

 

Advoc8tr's picture

Yes .. the 24 HR volume for BTC is around $3,000,000,000 so 1 million in a month from Zimbabwe is hardly the driving force of the rally.

It is simply the exponential graph associated with mainstream adoption.  We took 9 years to get to 1% awereness ... 3% is expected within the next 12 months.  And that is still only just the beginning. If you assume 100% awareness ultimately this thing has some serious legs. There are only 15,000,000 BTC in circulation and no-one can magically conjur more than the programmed inflation which is capped at 20,000,000 by 2040 or there abouts.

RedDwarf's picture

"Can someone please explain how Zimbabwe has that much influence over the global bigcoin price?"

Let me explain something very basic.  BitCoin is still a tiny currency.  It's got a market cap of like $130 billion dollars.  That is nothing.  Significant currencies are worth trillions of dollars, not billions.

That is why bitcoin is going to go up tens to hundreds of times the current price.  It's still a small puppy.

Captain Nemo de Erehwon's picture

Who knew Mugabe, or that he had that much power over the global economy.

FreeMarketAnarchist's picture

Smart. 

LTC is about to skyrocket. 

Crazy Or Not's picture

Robert, we have two retirement plans on offer for you:
Gold or Lead.

Soul Glow's picture

Malus Diaz told me to buy at $30.  If I had I would've been somebody.....

SMC's picture

Bitcoin is not worth more, just the fiat trash known as the USSA Federal Reserve Note is worth less! LOL.

kochevnik's picture

So true,  Fiat failure is core risk.  Elephant in room peanuts ignore until consumed

cristo's picture

stupid fucking article as if zimbabwe as anything to di with the price of bitcoin so stupid .

CH1's picture

And you know this precisely how?

malek's picture

And you know the opposite precisely how?

Because someone stated it without proof??

CH1's picture

Didn't say I "know" anything. You're the one who's claiming 100% certainty, not me.

malek's picture

If you inspect my statement carefully, I claimed exactly nothing.

But if you criticize a poster's comment, I think you might want to add some reasonable cause for doing so...

myorouter's picture

Has anything come of the rumors that Shepwave was considering analysis of bitcoins?  They seem to be the only analyst for the past 10 years at the least who can come close to getting the markets right. Zerohedge needs to look further into this issue.  Highly profitable.

 

 

83_vf_1100_c's picture

  Shepspam posts don't even get a derogatory comment now, just a dv.  Give up shepbot and go away.

  Back OT, why does Zimbab have anything to do with the price of bc or anything else? If the world awoke in the morning and there was a thousand foot hole where Zimbob used to be  it would garner a few articles on NatGeo, feed a few tinfoil hatters for a week and once the rain fills the hole might make a decent fishing spot. Otherwise, nada.

Kagemusho's picture

So now personal capital is doing the Harare Hustle, buggin' out with BitCoin. LMAO