$ 13,500: why bitcoin costs twice as much in Zimbabwe

Bitcoin buyers have to pay about $ 7,450 on Thursday for one of the coveted digital tokens of the world’s largest cryptocurrency. Thus, the digital currency has recovered from its interim crash and is back on track for success. If Bitcoin is too expensive for that, you should take a look at the price development in Zimbabwe – in the South African country, the bitcoin at the local trading center Golix costs around $ 13,499.

Political instability

The reason for the disproportionate price jump in Zimbabwe is the military takeover on the previous day. The then acting President Robert Mugabe is said to be under house arrest ever since. So far, however, the ruling party has rejected a resignation demanded by many sides. The military, meanwhile, announced that it would install a transitional government, but not seek a coup.

In the face of political uncertainty in the country, digital currencies such as Bitcoin are booming. Especially since effects, which usually ensure a market alignment of the Bitcoin prices, in the South African country partially do not reach.

No own currency

Because since 2009, the country no longer has its own currency. The previously valid Zimbabwe dollar was abolished and replaced by the US dollar. However, the central bank of the country is not allowed to print these and therefore has to import the banknotes into the country. However, since Zimbabwe can not boast sufficient export economy, there is simply too little physically present money in the country.

The introduction of promissory notes as a parallel currency in 2016 further aggravated currency chaos, as the pseudo-currency is threatened by hyperinflation. Many people have therefore considered alternative investments to secure their assets. The fact that especially extremely volatile digital currencies were identified as an investment opportunity, speaks for the lack of alternatives in terms of value.

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