Global crypto markets saw the price of Bitcoin sag a few percentage points on Monday, but what’s a few percentage points when BTC is worth nearly $10,000 each? That incredible price point is being experienced in Zimbabwe right now due to the economic crisis that’s currently racking the Zimbabwean people.
On Oct 23, digital currency followers and traders in the African nation noticed that Bitcoin value did sit at around $9,800 which came in following after settling a hurdle above $10,000 during the weekend.
However, it was not very surprising that these prices were kept only to the local exchange golix.io (which was known as BitFinance before).
Indeed, the local Zimbabwean crypto market is feeling the natural reverberations of the Zimbabwean economy’s current hyper-duress.
For instance, there is an extreme shortage of U.S. dollars in the nation, and this scarcity combined with an ongoing exploding inflation rate there have caused Bitcoin’s price to reflect these economic malaises.
The shift of Zimbabwe of fiat money to USD took place back in 2009 as the Zimbabwean dollar did really become worthless.
Vince Musewe – Zimbabwe’s leading journalist, just lately commented to a domestic paper The National that the price of BTC is firing upwards in the country because of Zimbabwe’s GOV failing to deliver any centralized answer for the economic crisis:
“The problem is the exact opposite of what it was during hyperinflation. Then, there was plenty of cash money, but no goods in the shops. Now, there are goods on the shelves but no money to buy them with.”
With no end in sight to the USD shortage there, a small group of crypto-enthusiasts in Zimbabwe are looking to hunker down in Bitcoin for the time being.
This is, of course, a fascinating dynamic: third-world users shifting into crypto when their governments have utterly mismanaged the national financial system. Look for this to be a growing theme in the years ahead.