Everyone knows that Bitcoin is a safe haven for those who live in countries with political turmoil because the government can’t control it. Citizens of Zimbabwe are far from trusting their own government due to their unreliable political leaders.
Just last week the price of one bitcoin hit $13000 (USD) which is astonishingly almost double the international market price. This sudden rise in demand can be attributed to the news that president Robert Mugabe was put under house arrest by military leaders.
As political turmoil increases in Zimbabwe, the price of Bitcoin can only keep growing as the people lose faith in their government controlled local currency and financial companies. Bitcoin is by far their best option as a storage of value that guarantees security.
It was reported that the top Zimbabwe cryptocurrency exchange, Golix, had processed trading volumes of more than $1 million this past month which is a record breaking number for the country. In these 30 days alone, it had beat the 2016 year by almost tenfold.
“It is an unregulated platform and prices for bitcoin and other currencies are set by supply and demand”
– Taurai Chinyamakobvu, co-owner of Golix
Zimbabwe has always had an issue with currency inflation and it was not until 2009 that hyperinflation made the Zimbabwean dollar worthless. With no local currency, they have been forced to use US dollars and South African rand. It’s safe to say that more and more citizens will slowly transition to cryptocurrencies as global presence increases.
It is likely that Zimbabwe is only one of the many countries where its people will see huge value in Bitcoin and other cryptocurrencies that allow them to be in control of their own money. Although he advantages of the digital coin are obvious, it’s difficult to say what will happen in the future in terms of possible regulations and bans.