While Uncle Bob has been messing around with his country’s economy like it’s just another one of his playthings, citizens have been forced to find other means of survival, namely bitcoin.
Yup.
Just last week we told you how popular the cryptocurrency has become in Zimbabwe – here – and, well, now CNN has caught on and just reported how “the most expensive bitcoin in the world is flying off [Zim’s] virtual shelves”.
It all began when the country was hit with a severe currency shortage, forcing Zimbabweans to look to digital alternatives in order to continue with their daily lives.
Now, Harare-based trading platform Golix has reported that bitcoin soared beyond $10 000 (R141 300) over the past week and, if you know anything about what has been going on with bitcoin, you will know that that amount is almost double its rates on major international exchanges:
“The price has been high for some time and it keeps going up,” says Golix trade coordinator Yeukai Kusangaya. She expects soaring demand to drive the price even higher.
Thanks to the country’s dysfunctional economy, bitcoin is being used to buy everything from cars to airtime, offering a unique opportunity for the cryptocurrency to soar:
Even before the current crisis, Zimbabwe offered favorable [sic] conditions for bitcoin adoption.
The country ranks third on the Bitcoin Market Potential Index, created by economic historian Dr. Garrick Hileman of the University of Cambridge, just behind the inflation-plagued economies of Argentina and Venezuela.
The Index cites Zimbabwe’s vast informal economy and history of financial crises as key factors that could drive bitcoin adoption.
Saxo Bank analyst Kay Van-Petersen suggests that Zim is a prime example of how bitcoin is here to stay:
“The underlying takeaway is that cryptocurrencies are here to stay and have a place in the world where monetary policy and fiat currencies cannot be trusted.
“It’s only a matter of time before an emerging or frontier market government decides to adopt a cryptocurrency as a foundation for credibility, transparency, accountability, and attraction of foreign capital.”
I guess the future really is now, at least for our neighbours.
[source:cnn]
