Inflation Hits Bitcoin Trading in Zimbabwe as the markets Bitcoin trading is on an exorbitant premium on the local Zimbabwean exchanges, as the embattled nation is struggling with another session of hyperinflation. At the time of writing this news, Bitcoin was selling on golix.com, the Zimbabwe local exchange, at $12,500. This inflation in price – almost two times the amount Bitcoin is being sold for in the US – is possibly linked to the difficulty in gaining access to other international exchanges.
The nation, Zimbabwe, has recently been in the news for its huge levels of inflation, which often creates conditions where citizens would have to carry a full bag of Zimbabwean dollars to the market all to buy some few simple groceries. In such economy where hyperinflation is rapidly devaluing whatever funds citizens have, an externally fixed currency such as Bitcoin or any cryptocurrency can create a usable and stable marketplace where none was in existence.
Creating New Markets for Cryptocurrency
The market forces in countries with weak or very weak fiat currencies are controlling the Bitcoin prices, as thousands upon thousands of new users are capitalizing on the ability to exchange funds and goods in a clean and simple way.
Clearly at this stage, the market denotes an arbitrage nightmare, depending on the side of the transaction that a consumer is. Nevertheless, the clear use case should give more hope to Bitcoin bulls who are seeking to see the Bitcoin price rise to higher levels.
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