Crypto News Flash #2 : Bitcoin Is Trading At $7200 In Zimbabwe As The Hyper-Inflation Again Hit The Country !!
If you remember the hyper-inflation impact on Zimbabwe in year 2008 then you must know the crucial effects of it on it's economy. Back in year 2008, Zimbabwe was under the height of super inflation which initially started in early 1990's. In late 2008, the inflation rate peaked at 79.6 % Billion which is just jaw dropping event for any country's economy.
Hyper Inflation can be described as the crucial rise in the rate of inflation or the very high degradation of the currency's value.
Back in year 2008, Zimbabwe has closed down it's currency printing units and announced that it'll survive on other nation's currency. And finally by the end of year 2015, Zimbabwe announced that it'll completely rely on US Dollar for it's inter-country transactions.
Hyper-Inflation caused Zimbabwe's own currency value turned to ashes, now the people have to rely on other nation's currency for their day to day needs. Infact, Zimbabwe's own currency has no value and can be used even for cleaning floors nowadays.
Basic necessities items have become very expensive and people with huge bag of money are only be able to get necessary items for themselves and their families.
In order to combat this situation, the people of Zimbabwe are trying to get their hands on Cryptocurrencies, in general Bitcoin, for their day to day transactions. Every shop is accepting the payment via Bitcoin in Zimbabwe,
Due to the sudden rise, the local Zimbabwe cryptocurrency exchange named BitcoinFundi is selling Bitcoin at a premium of almost 85%. If we talk about International Market, the current Bitcoin price is $3900 but in Zimbabwe Bitcoin is trading at $7200 and still people are standing in queue to get their hands on Bitcoin or other cryptocurrencies being accepted by shopkeepers.
In Zimbabwe, Government has banned the use of credit card for payments as well as the intra-country money transfers. So, people are relying mostly on Bitcoin for day to day transactions.
The Conclusion is : Bitcoin & Dollar are the two currencies or mode payment accepted by Zimbabwe citizens for now as the country is again heading to another hyper-inflation attack just like in year 2008.
Let's see how this demand for Bitcoin affects the International Bitcoin pricing ?
Share your views in the comment box please.
Thanks for reading ..!!
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Wow! I wasn't old enough in 2008 to remember the inflation events in Zimbabwe at the time. I found out about it very recently while discovering bitcoin. It's crazy to think that this is happening again. At least this might show the world that Bitcoin (and other crytocurrancies) are a viable option for the future.
Also side note I think you have a small typo where you have written 2005 instead of 2015 :)
Thanks for the article @cryptonet
Thank you. Now, it is corrected :)
No problem
Great post
How many villages can you buy with 1BTC?
A really grat post, with lots of good Information.
It's a great job if God gives it
Definitely there will be an increase in bitcoin for international market as well, not double like this but atleast upto $4000.
You mention your source as Wikipedia. I didn't see anything suggesting that bitcoin is widely accepted in Zimbabwe. If you have a source for that, I would be very interested to read it.