For Bitcoin And Zimbabwe : A Currency In Need Is A Friend Indeed

It is certainly a universal truth that people in countries with great fluctuation in their currency and a less stable political climate are much more enthusiastic for the growth of bitcoin and other cryptocurrencies than others. They are looking at this innovation from a store of value, a way to retain their wealth and still have parity and purchasing power despite upheavals and issues in their local areas.

We have witnessed this in Venezuela where hyperinflation runs rampant, Argentina with it’s political and monetary instability and Colombia with its various reasons for participating. The situation is Venezuela has got quite disturbing as bitcoin mining can be dangerous and deadly.

The same principle of uncertainty applies to countries across the world and Zimbabwe is one of them with their various stages of facing hyperinflation in their uncertain political climate.

Well, they are experiencing more volatility and due to this, their financial markets are responding with more trust in the power of bitcoin as prices for btc have risen to $13,000 in a global environment where prices are $7000/btc.

The recent events that have caused this are Robert Mugabe, the current president of Zimbabwe, abruptly dismissing key state leaders such as his deputy and vice president, Emmerson Mnangagwa.

Mugabe has dismissed him, accusing of him planning to overthrow the current government leaders and seize power.  Mugabe has ruled the country since their country received it’s independence from Britain in 1980.

These issues have affected and exacerbated problems in their parallel market currency rates. Many of the traders in these markets are then moving away from their local monetary assets. This in turn is leading to reactions from investors who are not being helped by foreign currency shortages to leave the country.

These investors and traders thinking that they won’t have any other forms of recourse in their unstable environment are exchanging the values in their local bank accounts for currencies in other markets one of them being bitcoin.

This has led to the surge in the price of bitcoin making it hover around the value of $13,000.

Bitcoin exchanges like Golix, whose mission is “to give everyone financial autonomy” and has been working on the problem of “making an international payment from an African country such as Zimbabwe” from impossible for most people to possible for all is seeing it’s clout go up.

There are various constrictions and issues in general flows of money and transaction issues that are taking place which have affected international transfers of money which have affected individuals and businesses in the import/export business as well.

These escalations of doubt and fear are expected to increase as the country is gearing up for elections next year.

Overall, it seems the more uncertainty in general environments the more people are turning to other forms of storing value and cryptocurrencies seem to be embraced as a value store haven.

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By | 2017-11-09T00:41:09+00:00 November 9th, 2017|News|0 Comments

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