In Zimbabwe, the cost of Bitcoin has reached $ 7,200, while the rest of the world trades it just above $ 4,200. The reason is the severe crisis in the African country and the threat of new hyperinflation.
The authorities of the country, where the black market is flourishing, have already restricted the movement of capital, and blocked the possibility of paying by bank cards. The population seeks to preserve their savings, so it buys US dollars and Bitcoin.
In fact, the only alternative to the usual means of payment in Zimbabwe are crypto-currencies, and the demand for them is increasing exponentially.
For example, car buyers want to pay in Bitcoin, and sellers in turn gladly agree to such a deal.
A new crisis in Zimbabwe is just around the corner. The black market is booming, government bonds will soon turn into paper, and inflation will raise its head again. In anticipation of another crash, people are trying to withdraw their savings from the country, but the financial system is working so badly that it is often impossible to do it.
In fact, the only effective alternative is cryptocurrency. That is why the demand for them in Zimbabwe is simply huge. Not surprisingly, the price of the Bitcoin itself is almost twice as high as in the rest of the world.
The use of Bitcoin in Zimbabwe is growing exponentially, as the government began to stop all payments on credit cards and limited the flow of cash into and out of the country. This award reflects a crazy desire to find ways of making transactions in an economy where traditional means of payment become unacceptable.
Zimbabwe has already experienced one hyperinflation in 2008, when the money in the literal sense of the word was carried by carts. In the near future, the situation may recur.