Bitcoin Soars To Record High Above $8000 After Mugabe Speech

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.

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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.

Comments

nope-1004 Raffie Sun, 11/19/2017 - 15:45 Permalink

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.........

In reply to by Raffie

R19 Skateboarder Sun, 11/19/2017 - 15:54 Permalink

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.

In reply to by Skateboarder

R19 Lordflin Sun, 11/19/2017 - 16:09 Permalink

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.

In reply to by Lordflin

Food Loaf Junkie R19 Sun, 11/19/2017 - 16:46 Permalink

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"  :-)

In reply to by R19

Lordflin R19 Sun, 11/19/2017 - 17:00 Permalink

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...

In reply to by R19

CH1 Lordflin Sun, 11/19/2017 - 18:50 Permalink

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.

In reply to by Lordflin

ThePhantom Skateboarder Sun, 11/19/2017 - 16:13 Permalink

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

In reply to by Skateboarder

nope-1004 Raffie Sun, 11/19/2017 - 17:21 Permalink

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. 

In reply to by Raffie

qwertyFUBAR nope-1004 Mon, 11/20/2017 - 02:14 Permalink

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. 

In reply to by nope-1004

Advoc8tr qwertyFUBAR Mon, 11/20/2017 - 02:20 Permalink

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.

In reply to by qwertyFUBAR

RedDwarf nope-1004 Mon, 11/20/2017 - 02:24 Permalink

"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.

In reply to by nope-1004

myorouter Sun, 11/19/2017 - 15:41 Permalink

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 myorouter Sun, 11/19/2017 - 20:30 Permalink

  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.

In reply to by myorouter