“at a near $400 premium in the country. At local exchange Golix it was trading at $9,899 over the weekend”.
Looks like they meant $4000 premium.
Topic: [2017-10-24] Why everyone's talking about bitcoin and Zimbabwe (Read 2884 times)
What is happening with Zimbabwe is a very interesting economic story. I remember reading the news many years ago about the hyperinflation affecting the whole country rendering their fiat money almost worthless. Years of economic mismanagement and neglect caused the many factors which almost killed the country's economic backbones. Now, that they already adopted the US dollar as the currency the government could not order printing of paper money anymore as the source must be the US of A for more dollars. This is one country which opted to surrender their economic sovereignty in fighting the superb inflation. Just like what happened in Venezuela, the ground is wet and ready for the entrance of Bitcoin, hence the demand is exceeding the supply pushing the price much much further than what the outside world is paying.
Will it mean nice to be able to visit Zimbabwe and sell my Bitcoin in there and at the same take a good vacation in this beautiful African nation? That would not be easy, though.
Will it mean nice to be able to visit Zimbabwe and sell my Bitcoin in there and at the same take a good vacation in this beautiful African nation? That would not be easy, though.
I don't see why stocks would be a decent safe haven option for those who desperately need it. Even physical gold is a far better tool for that purpose, but it by far isn't as convenient as Bitcoin, which can be seen as digital gold.
If you can discard the volatility, which isn't something long term minded people should get concerned about, then Bitcoin by far is the better option to go for. Bitcoin is something you actually own, which isn't the case with stocks.
People need to look for ways where even their government can't reach their wealth, and that's where Bitcoin jumps in. It's quite easy to obtain, insanely divisible, is constantly increasing in value, and the list goes on ~ no cons here.
If you can discard the volatility, which isn't something long term minded people should get concerned about, then Bitcoin by far is the better option to go for. Bitcoin is something you actually own, which isn't the case with stocks.
People need to look for ways where even their government can't reach their wealth, and that's where Bitcoin jumps in. It's quite easy to obtain, insanely divisible, is constantly increasing in value, and the list goes on ~ no cons here.
A surge in demand for digital currency in Zimbabwe has highlighted an interesting quirk in the trading of bitcoin, as well as the current economic woes the African country is facing.
"Zimbabwe panic sends bitcoin soaring over $6,000?" asked a report on one cryptocurrency website over the weekend. While the answer is clearly no — there's not enough trade in Zimbabwe to impact the price — it does hint at two issues.
Firstly, Zimbabwe appears to be facing some serious currency concerns again.
After the hyperinflation of 2008, the country adopted the U.S. dollar as its own. But a scarcity of greenbacks means a crisp new $100 bill can reportedly trade at a premium and is worth more than the digital dollars that people have in their bank accounts. They're also trading at a higher price to the Zimbabwe "bond notes" that the government recently introduced. These are a domestic quasi-currency that looked to solve the lack of U.S. dollars in the country.
Now there's a "debilitating liquidity crunch and an acute cash shortage," according to the Zimbabwe Independent newspaper Friday, which has "severely crippled companies which need to import critical inputs for operations."
The Middle East's The National newspaper summed it up the other day: "This time (in Zimbabwe) the issue is not too much money — it is that there is too little. Because the reserve bank cannot print U.S. dollars itself — the U.S. alone can do that — it must rely on imported cash."
With concerns over currency, it's no surprise that the stock market is at record highs with people seeking any sort of haven. It's also no surprise that bitcoin is trading at a near $400 premium in the country. At local exchange Golix it was trading at $9,899 over the weekend. Golix has itself posted a blog on how capital controls and restrictions in the country are causing people to flock to bitcoin.
Nonetheless, this big price difference for bitcoin also highlights the second issue. Different jurisdictions having different currency rules will mean some price quirks. The knock-on effect? It will allow arbitrage trading — exploiting price differences between similar financial instruments. And with various countries around the world looking at state control for bitcoin, such as charging taxes on it, I'd expect more of these price peculiarities to appear.
Only the nimble will reap the rewards. But remember the usual caveats, bitcoin has its critics and is prone to some seriously volatile trading.
https://www.cnbc.com/2017/10/24/why-everyones-talking-about-bitcoin-and-zimbabwe.html
"Zimbabwe panic sends bitcoin soaring over $6,000?" asked a report on one cryptocurrency website over the weekend. While the answer is clearly no — there's not enough trade in Zimbabwe to impact the price — it does hint at two issues.
Firstly, Zimbabwe appears to be facing some serious currency concerns again.
After the hyperinflation of 2008, the country adopted the U.S. dollar as its own. But a scarcity of greenbacks means a crisp new $100 bill can reportedly trade at a premium and is worth more than the digital dollars that people have in their bank accounts. They're also trading at a higher price to the Zimbabwe "bond notes" that the government recently introduced. These are a domestic quasi-currency that looked to solve the lack of U.S. dollars in the country.
Now there's a "debilitating liquidity crunch and an acute cash shortage," according to the Zimbabwe Independent newspaper Friday, which has "severely crippled companies which need to import critical inputs for operations."
The Middle East's The National newspaper summed it up the other day: "This time (in Zimbabwe) the issue is not too much money — it is that there is too little. Because the reserve bank cannot print U.S. dollars itself — the U.S. alone can do that — it must rely on imported cash."
With concerns over currency, it's no surprise that the stock market is at record highs with people seeking any sort of haven. It's also no surprise that bitcoin is trading at a near $400 premium in the country. At local exchange Golix it was trading at $9,899 over the weekend. Golix has itself posted a blog on how capital controls and restrictions in the country are causing people to flock to bitcoin.
Nonetheless, this big price difference for bitcoin also highlights the second issue. Different jurisdictions having different currency rules will mean some price quirks. The knock-on effect? It will allow arbitrage trading — exploiting price differences between similar financial instruments. And with various countries around the world looking at state control for bitcoin, such as charging taxes on it, I'd expect more of these price peculiarities to appear.
Only the nimble will reap the rewards. But remember the usual caveats, bitcoin has its critics and is prone to some seriously volatile trading.
https://www.cnbc.com/2017/10/24/why-everyones-talking-about-bitcoin-and-zimbabwe.html
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