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.
Crypto-enthusiasts in the African nation saw the price of BTC settle at approximately $9,800 on Monday after having capped $10k over the weekend.
Unsurprisingly, though, these over-extended prices have been isolated to the local exchange golix.io (formerly BitFinance).
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.
Zimbabwe switched over to USD back in 2009 after the former Zimbabwean dollar became worthless—literally.
One of Zimbabwe’s leading journalists, Vince Musewe, recently told the domestic paper The National that the value of Bitcoin is exploding in the nation because Zimbabwe’s government has failed to provide centralized solutions to the current 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.
TLDR: The price of Bitcoin is exploding in Zimbabwe as U.S. dollar scarcity in the nation is reaching a fever pitch.