?I didn't know that...
Topic: Why is BTC at $10,000 in the USA and also at $76,000 in Zimbabwe? (Read 566 times)
Is BTC in Zimbabwe still $76,000 ?
I didn't know that...
?I didn't know that...
July 26, 2019, 06:34:41 AM
To hold any Dollars, Gold or Diamonds in some african countries is danger. You can't easy hiding them. And if you try to run away in another country, you can't take anything like this with you.
Bitcoins don't have any problems like this. If you remember the seed and have it in your mind, you are safe and probably rich.
That's make the price up.
Bitcoins don't have any problems like this. If you remember the seed and have it in your mind, you are safe and probably rich.
That's make the price up.
July 14, 2019, 04:46:58 PM
I was thinking arbitrage would be easy
Near impossible, unless you live in the region. Zimbabwe has banned bitcoin exchanges, and so the main African exchanges such as Golix do not trade there. Even for citizens with full Zimbabwe IDs, bank accounts, etc., it is still very difficult to get USD in or out of the country electronically. For foreign nationals, it is near impossible. I'm sure there will be some people buying bitcoin in South Africa (for example) and then traveling across the border and selling at a premium in USD, ZAR, or another foreign currency, but such practice is illegal and so very risky.Have any insight on why a country's people would allow this to even happen though?
Zimbabwe isn't exactly renowned for being a bastion of free speech. Government sponsored violence is commonplace. Political opponents, activists, and protestors are subjected to intimidation, attacks, beatings, being made homeless, or murder. There are even reports of government run torture facilities. July 14, 2019, 02:52:55 PM
Is this $76.000 paid in US dollars, or is it the converted amount paid in Zimbabwean dollars? My guess would be it's the latter, meaning the real exchange rate is much lower than the official exchange rate.
And that makes sense: a US dollar is still worth (more or less) the same a week later, while a Zimbabwean dollar is instantly worth much less. That makes the Zimbabwean dollar something you quickly need to get rid off, so exchanging it to Bitcoin is much better than keeping, even if you have to pay a much higher rate.
A much more conventional way would be to officially switch to using US dollars.
According to Mycelium on my phone, BitcoinVenezuela.com has an exchange rate of 32374460.75 EUR per BTC. I don't think I'll get a truckload of euro bills if I would go there with 1 Bitcoin.
And that makes sense: a US dollar is still worth (more or less) the same a week later, while a Zimbabwean dollar is instantly worth much less. That makes the Zimbabwean dollar something you quickly need to get rid off, so exchanging it to Bitcoin is much better than keeping, even if you have to pay a much higher rate.
After reading @o_e_l_e_o replies I must say if Zimbabwe government were wise, accepting bitcoin as their country's Currency could be a starting ground for solving the country's problem as bitcoin can't be affected by inflation.
I think the underlined part is the problem A much more conventional way would be to officially switch to using US dollars.
According to Mycelium on my phone, BitcoinVenezuela.com has an exchange rate of 32374460.75 EUR per BTC. I don't think I'll get a truckload of euro bills if I would go there with 1 Bitcoin.
This explains things a lot better. I was thinking arbitrage would be easy but I think you're right that they are converting the local currency to USD at that point. Have any insight on why a country's people would allow this to even happen though? Looking above, this doesn't seem to be the first time it has happened (devaluation to extremes) and you would think people there would take a stand after losing so much time after time. If what I'm reading is right, living in Zimbabwe right now or anytime in recent history is pretty much a situation where you want to convert earnings ASAP before you lose it all. We are kind of in the same situation with first-world currencies and inflation but not nearly to the same degree, and it's ludicrous to force people into that type of lifestyle they are facing.
July 13, 2019, 12:26:59 PM
What are the reasons for this price difference?
Probably because all currencies that are being used down there in Zimbabwe are volatile and the only option to them now is to use cryptocurrencies which seem to be at least are the stable and less volatile as compared to what they have. 
July 13, 2019, 01:36:24 AM
~ People in 1st world countries have strong currencies and they do not need protection from their own government, so they simply ignore this threat, but when this happens to them, then they suddenly look for other alternative currencies.
The situation in Greece was never as bad as it is in Zimbabwe, and, probably, countries like USA, UK, Switzerland and Germany will never be in the place of Greece even, regarding the economic situation, and yet I agree with you that most countries are not immune to hyperinflation, and Bitcoin can be a good solution for them in case of economic crisis. It's good that there have been less and less governments like that in Zimbabwe, who are not only drag their country into crisis, but, on top of that, obstruct their citizens to get out of a difficult situation on their own.
July 06, 2019, 07:28:27 AM
to stop the illegal money trade the government blames for rising inflation.
This is the root of the problem. As I mentioned earlier in this topic, the government have done little, if anything, to address many of the factors which resulted in Zimbabwe's weak economy and hyperinflation. They blame outside causes, even blaming the foreign currency which kept their country afloat over the last 10 years, whilst ignoring the fact that their decision are what resulted in Zimbabwe's farming and manufacturing sectors all but disappearing, the state sponsored violence and suppression means no citizen trusts them, etc. Banning their citizens from using a currency they are all dependent on, and has formed the basis of their economy for the last 10 years, is unlikely to do very much to improve the whole "we don't trust the government" thing.They've launched a new currency in the same (or maybe even a worse) economical climate which caused hyperinflation of the last one. The results will be the same.
This is why Bitcoin is a much better option than local reserve currencies. You do not have a government forcing you to use their reserve currency and you are also not told how much you can take out of that country. Bitcoin gives people true financial freedom, but most people do not appreciate this, because that privilege has not been taken away from them...yet.
People in 1st world countries have strong currencies and they do not need protection from their own government, so they simply ignore this threat, but when this happens to them, then they suddenly look for other alternative currencies.
July 06, 2019, 04:38:18 AM
to stop the illegal money trade the government blames for rising inflation.
This is the root of the problem. As I mentioned earlier in this topic, the government have done little, if anything, to address many of the factors which resulted in Zimbabwe's weak economy and hyperinflation. They blame outside causes, even blaming the foreign currency which kept their country afloat over the last 10 years, whilst ignoring the fact that their decision are what resulted in Zimbabwe's farming and manufacturing sectors all but disappearing, the state sponsored violence and suppression means no citizen trusts them, etc. Banning their citizens from using a currency they are all dependent on, and has formed the basis of their economy for the last 10 years, is unlikely to do very much to improve the whole "we don't trust the government" thing.They've launched a new currency in the same (or maybe even a worse) economical climate which caused hyperinflation of the last one. The results will be the same.
July 05, 2019, 02:05:27 AM
The problem started with this --> http://www.702.co.za/articles/353581/zimbabwe-bans-foreign-currency-reigniting-fears-of-hyperinflation and I quote, " Kasumba discussed the banning of foreign currency in Zimbabwe to stop the illegal money trade the government blames for rising inflation. Until it introduces a new, permanent currency, the RTGS dollar remains the only legal tender."
So you have a government that wants to shift the blame for their weak economy and bad political decisions onto something that would clearly not help to solve their problems.
Zimbabwe alienated the world, when Mugabe was still in power and after he was replaced, things just went on as normal. The problem is much deeper than foreign currency use and people are using these alternative currencies to protect their wealth from hyper inflation that are out of control with their own reserve currency.
So you have a government that wants to shift the blame for their weak economy and bad political decisions onto something that would clearly not help to solve their problems.
Zimbabwe alienated the world, when Mugabe was still in power and after he was replaced, things just went on as normal. The problem is much deeper than foreign currency use and people are using these alternative currencies to protect their wealth from hyper inflation that are out of control with their own reserve currency.
July 04, 2019, 07:24:04 AM
Zim $$$ drop faster then turbocharged shitcoins. xP
They can get bitcoin from a regular exchange I don't know why anyone would exchange for zim $$$ when they can use USD or even bitcoin. I wonder what that amount of money looks like in zim $$$, do you need wheelbarrow full to buy just bread, like during the great depression in Germany. That was hectic...
This talk of making crypto illegal is getting old and people are ridiculous. The government can't just do what it wants. You don't know what people are doing online. You can't tell if someone owns crypto. Besides making crypto illegal is against your human rights. If the government can't handle crime how on earth will they handle crypto transactions? The very idea is Ludacris. The government has better things to do I promise you that.
What's stopping them from just getting bitcoin on a regular exchange? Is the access to non-governmental internet prohibited? Is the access to a computer at all kind of rare? Many have cell phones these days, even people in 3rd world countries. Seems like bitcoin would be hard to stop there without just outright making it illegal. With the worldwide interconnectedness I don't understand why the large price differential, seems like (assuming access to electronic accounts) they could just buy at the regular world market rate for bitcoin.
They can get bitcoin from a regular exchange I don't know why anyone would exchange for zim $$$ when they can use USD or even bitcoin. I wonder what that amount of money looks like in zim $$$, do you need wheelbarrow full to buy just bread, like during the great depression in Germany. That was hectic...
This talk of making crypto illegal is getting old and people are ridiculous. The government can't just do what it wants. You don't know what people are doing online. You can't tell if someone owns crypto. Besides making crypto illegal is against your human rights. If the government can't handle crime how on earth will they handle crypto transactions? The very idea is Ludacris. The government has better things to do I promise you that.
July 04, 2019, 05:25:40 AM
~
According to Mycelium on my phone, BitcoinVenezuela.com has an exchange rate of 32374460.75 EUR per BTC. I don't think I'll get a truckload of euro bills if I would go there with 1 Bitcoin.
According to Mycelium on my phone, BitcoinVenezuela.com has an exchange rate of 32374460.75 EUR per BTC. I don't think I'll get a truckload of euro bills if I would go there with 1 Bitcoin.
That's what I'd been thinking too while reading the posts above. In reality you can't buy US$76k worth of goods or services with a load of Zimbabwean Dollars that, according to the official exchange rate, "worth" 76k USD even in Zimbabwe, let alone in other countries. Nor you can exchange a trunk of that worthless paper for anything even close to 76k USD anywhere in the world. Same goes for Venezuelan Bolivar and for other currencies in countries with hyperinflation.
July 04, 2019, 02:59:10 AM
Is this $76.000 paid in US dollars, or is it the converted amount paid in Zimbabwean dollars? My guess would be it's the latter, meaning the real exchange rate is much lower than the official exchange rate.
And that makes sense: a US dollar is still worth (more or less) the same a week later, while a Zimbabwean dollar is instantly worth much less. That makes the Zimbabwean dollar something you quickly need to get rid off, so exchanging it to Bitcoin is much better than keeping, even if you have to pay a much higher rate.
A much more conventional way would be to officially switch to using US dollars.
According to Mycelium on my phone, BitcoinVenezuela.com has an exchange rate of 32374460.75 EUR per BTC. I don't think I'll get a truckload of euro bills if I would go there with 1 Bitcoin.
And that makes sense: a US dollar is still worth (more or less) the same a week later, while a Zimbabwean dollar is instantly worth much less. That makes the Zimbabwean dollar something you quickly need to get rid off, so exchanging it to Bitcoin is much better than keeping, even if you have to pay a much higher rate.
After reading @o_e_l_e_o replies I must say if Zimbabwe government were wise, accepting bitcoin as their country's Currency could be a starting ground for solving the country's problem as bitcoin can't be affected by inflation.
I think the underlined part is the problem A much more conventional way would be to officially switch to using US dollars.
According to Mycelium on my phone, BitcoinVenezuela.com has an exchange rate of 32374460.75 EUR per BTC. I don't think I'll get a truckload of euro bills if I would go there with 1 Bitcoin.
July 04, 2019, 12:03:51 AM
This is due to capitalism. It is the main reason. Capitalism, corruption and greed. Healthy crypto-anarchism with a share of socialism will save this world. I hope so =)
July 03, 2019, 04:02:45 PM
Don't believe discrepancies that are this high, at most it is a 10-20 % premium that is paid in certain countries. I've seen this happen in Korea, Iran, and a few other countries. A lot of money can be made through arbitrage if you have the right connections set up and act quickly.
It was proven that this was fake news.
What was fake news? The entire 76K fiasco was fake??
July 02, 2019, 11:38:11 AM
Don't believe discrepancies that are this high, at most it is a 10-20 % premium that is paid in certain countries. I've seen this happen in Korea, Iran, and a few other countries. A lot of money can be made through arbitrage if you have the right connections set up and act quickly.
It was proven that this was fake news.
July 02, 2019, 10:49:20 AM
Don't believe discrepancies that are this high, at most it is a 10-20 % premium that is paid in certain countries. I've seen this happen in Korea, Iran, and a few other countries. A lot of money can be made through arbitrage if you have the right connections set up and act quickly.
July 02, 2019, 10:26:55 AM
Bitcoin is not a global currency. At All.
July 02, 2019, 09:29:22 AM
Seems like bitcoin would be hard to stop there without just outright making it illegal.
That's exactly what the government did. There is a large African exchange called Golix which used to trade pretty large volumes in Zimbabwe, which has had to shutdown their operations in the country. They have had their fiat accounts frozen, and have even stopped operating their bitcoin ATM in the capital, Harare. The vast majority of international exchanges like Coinbase, Bitstamp or Kraken, don't accept accounts from Africa. From what I've read, it seems some are travelling over the border to South Africa and buying there - these may well be the same people who are offering to sell on localbitcoins for $76,000.The real irony is the government made bitcoin illegal because of its potentially "destabilizing effects" on their financial system.
Thanks, that makes a bit of sense. If I understand correctly then they are selling (trying to) bitcoin at huge prices but they are accepting payment in Zimbabwe currency, not dollars, we are just reading about what the value would be converted to dollars. So the sellers are hedging against the expected massive and rapid inflation of the local currency, in that case the price doesn't seem out of whack. I wonder how the regular folks there cope.
July 02, 2019, 09:23:42 AM
Last week the Zimbabwean government banned all foreign currency, including the US dollar, and stated that the government's RTGS dollar is the only acceptable currency. This new currency, which was launched in February after the old Zimbabwe dollar was demonetized back in 2009, is already starting to see the same rampant inflation which crashed the old currency. People don't like being paid in it because it rapidly devalues, and the price of goods and services in RTGS dollars is rapidly increasing. Because of all this, US dollars are now both illegal, but also much more stable and more in demand than their own currency, and so attract a premium price on black markets.
Which in a result have same impact as before. Bitcoin is REAL international value and local currency is garbage. So less and less people want to exchange their Bitcoin for this local currency which is no suprise at all. So someone willing to do it, wanting premium price. Explained
July 02, 2019, 08:33:58 AM
I read this article
I am curious and click on link to read, but it seems that the link to given article is dead, or you mislinked it. Not sure. If you mislinked it, please fix. Thank you so much.In another article, with this hyperinflation rate, I wonder that Zimbabwe will become a second Venezuela or not.
Quote
The original Zimbabwean dollar was abandoned just over a decade ago, when annual inflation had reached 89 700 000 000 000 000 000 000% (that’s 89.7-sextillion percent)
https://mg.co.za/article/2019-06-24-why-no-ones-buying-the-new-zimbabwean-dollar Jump to: