Bitcoin is Now Trading at 85% Premium at a Price of $7,200 in Zimbabwe
As some countries devalue their currencies, tales of hyperinflation are on the rise and citizens are forced to smell the coffee as the lug suitcases full of cash to simply buy a packet of milk.
In 2008, Zimbabwe’s hyperinflation peaked to a critical and unbearable point and recent inflation spikes in the economy indicate that this could be the case once more. As a result, citizens are on the search for other forms of stable currencies; thus turning towards Bitcoins and US Dollars.
Bitcoin in Zimbabwe
The Government of Zimbabwe has commenced halting all payments done with credit cards and cash moving in or out of the country. This has forced people to use Bitcoins for everyday transactions involving money; resulting in Bitcoin’s massive growth in the country.
Government restrictions on cash and credit cards have resulted in the rush to acquire Bitcoins, thus pushing the price of the premium to a dizzying $7,200 - as listed on BitcoinFundi; Zimbabwe’s local Bitcoin exchange.
In Venezuela, hyperinflation is also on a rise and is forcing a similar result of that of Zimbabwe – the uptake of Bitcoin. Business and citizens alike are now strong-armed into using non-governmental sources and this gives many indications that economies facing critical hyperinflation could also go through ‘Bitcoinization’.