Bitcoin Price Doubles In Troubled Zimbabwe

A surprise political move by Zimbabwean president Robert Mugabe, who fired his deputy Emmerson Mnangagwa, has played havoc on the US dollar/bond note parallel exchange rate, as well as on Bitcoin price in the country.

image courtesy of CoinTelegraph

As CoinTelegraph reports, Bitcoin was already trading at a highly inflated rate in the troubled African country as its demand skyrocketed as a potential alternative to the dregs of a currency that Zimbabwe has left. However, that inflation has hit almost 100 percent as it trades about $13,000 per coin.

Trading on uncertainty

Unsurprisingly, with this latest political coup by the entrenched president, there is much speculation and worry about the already fragile and almost non-existent fiat currency system. Zimbabwe operates on bond notes linked to the US dollar.

Traders have been trying to move out of monetary assets as even on the dollar there is a 62 percent premium.

It has meant that investors are trapped by the currency shortages, seeking an alternative to exit the country - such as Bitcoin. Despite hitting a price of over $13,000 traders say that Bitcoin is booming as it is the strongest alternative.

Collapse of banking

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.


Comments

J S Bach God Emperor Thu, 11/09/2017 - 17:48 Permalink

Monkeys with a money printing machine... hmmmm... not a surprising outcome.  At least (((our counterfeiters))) have the good sense to hide their manipulations imperceptively from the gullible public.  Patient inflation of the currency can be spread out over a much longer period of time.  But, impetuous blacks just can't resist the temptations of the cookie jar.  There are several cases of their having slaughtered white farmers, swatting on their landed prize and consuming the very seed corn for the following year's crops.  If that's not sub-Saharan stupidity, I don't know what is.

In reply to by God Emperor

bluerivercard Thu, 11/09/2017 - 17:40 Permalink

Exciting Blockchain alternative to Google Adsense! JSE-Coin (Pre-ICO opportunity) Check out JSE Coin, an exciting Blockchain based alternative to Google Adsense. Website owners - replace ads or earn additional revenue from your websites with user approved (low-CPU) background mining. Also, anybody can mine the coin using their web browser! Get in at an early (Pre-ICO) stage, when potential rewards are higher. Referred linkhttps://platform.jsecoin.com/?lander=1&utm_source=referral&utm_campaign…

null Thu, 11/09/2017 - 17:44 Permalink

1 BTC == infinite something
1/10,000 BTC == same infinite something

They would trade their currency for used clothing at this point. 13K is super low, in other words.

maxblockm ForWhomTheTollBuilds Fri, 11/10/2017 - 01:18 Permalink

My guess is it's all about the cash exchange. You have to deposit the dollars into your bank, then transfer from bank to exchange.But to deposit into bank,they charge a hefty premium.Think of it as a $6000 ATM fee, for deposit.But if you have alot of cash you're trying to get out of Zimbabwe, a 40% haircut is better than 100%,ala Breaking Bad S5E3 "Hazard Pay" @ ~38:53.Pay the premium for BTC, or pay even more for the cash costs.Then again, it's not purely digital: https://localbitcoins.com/buy-bitcoins-with-cash/1167198497/zimbabwe-zi…

In reply to by ForWhomTheTollBuilds

Greendawg Thu, 11/09/2017 - 17:45 Permalink

if they did thier proper research they would know gold is king in Zimbabwe.  People are back to digging for 18 hours a day to mine fractions of a gram of unrefined gold just to survive.  They are destroying what little infrastructure they have to illegally mine gold.  The shitcoin pumptards dont want the facts get in the way of a good story though, especially when they are trying to steal from others with thier childish pumps.   https://www.iol.co.za/news/special-features/zimbabwe/gold-fever-leaves-…

Greendawg dasein211 Thu, 11/09/2017 - 19:01 Permalink

Mugabe isn't going to kill the only goose egg he has, in fact he is implementing many pro gold measures in an attempt to stabilize its next currency after this one has collapsed.  He wants to back the new currency with gold and is implementing laws to make mining more lucrative to outside investors.  I mean, its either mine, or admit they were wrong by purging the white farmers when the locals dont know how to grow crops.  Hmmm, tough decision for the cannibal/tyrrant.  PS nobody uses shitcoin in Zimbabwe.  60% of the population doesnt have access to electricity let alone a computer or smartphone.  

In reply to by dasein211