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Bitcoin is becoming more and more a valuable store in Zimbabwe while the # Inflation starts to climb and prices soar, With investors abandoning their monetary assets, experts said this week that the price of cryptocurrency is skyrocketing.
Zimbabwe fights foreign currency shortages, which has led to crippling liquidity crisis. Bitcoin has emerged as a popular value store and the Golix trading platform for bitcoin in Zimbabwe says it's dealing with bitcoin transactions worth $ 1 million during the month of October 2017 .
Bitcoin prices in Zimbabwe climbed to $ 12490 on Thursday morning, compared with global averages of about $ 6,000. There is strong expectation that the price of bitcoin will continue to rise at Zimbabwe as more and more people accept it because of difficulties in making international payments.
"There is inflation in Zimbabwe and bitcoin is an interesting store of value," Taurai Chinyamakobvu, a technology and blockchain expert, told NCC in the country.
The makers of the Golix trading platform in Zimbabwe say that the demand for bitcoin has exploded. The exchange only makes trade easier and officials say that Bitcoin sellers in Zimbabwe are accepting mobile money and bank transfers.
Yeukai Kusangaya, who facilitates trade deals in Golix, told CCN in an interview this week that there was "more demand than offer" bitcoins in Zimbabwe at the moment. Demand is stimulated by difficulties in making international payments. Banks and mobile money platforms have disabled Visa and MasterCard credit and debit cards for international payments, leaving many people in Zimbabwe stranded.
"Bitcoin can be used to pay for vehicle imports and to buy goods on e-commerce sites such as Amazon," Kusangaya said.
Other experts in Zimbabwe say that bitcoin, although likely to volatility, is a safer bet in terms of investment. Others consider it even safer than gold in terms of value appreciation. But there are concerns about the lack of regulation by governments, although some jurisdictions may be regulating the bitcoin trade.
"There is no owner or control body for bitcoin." All transactions made online are visible to all bitcoin traders, "said Pardon Gatsi, a technology expert. based in Harare, the capital of Zimbabwe, at CCN
Banks in Zimbabwe often lack banknotes and coins and the introduction of bitcoin has been a solution among reports that some companies are now adopting bitcoin for software payments among other assets and services.
Traders and those seeking international payments hope that the price of bitcoin will remain high and that the central bank or other government authorities will not intervene to regulate cryptocurrency.
Image from Shutterstock.