(Zimbabwe) The security of cryptocurrency has long been enticing to Zimbabweans, who face hyperinflation leading to $1 being worth 35 quadrillion Zimbabwean dollars. The recent military takeover of the capital has made the situation worse. Zimbabweans can currently only trade cryptocurrency on Golix, where the prices have risen 10% to $13,499. This is nearly twice the price of the U.S. Bitcoin price, which currently rounds out to nearly $7,000.
This surge is being driven by Zimbabwean investors seeking security from the domestic banking system. The country is facing a number of ongoing financial, political, and monetary woes. After hyperinflation made its note nearly worthless, Zimbabwe began using a mix of currencies from stable economies including the US dollar in 2009.
As the political situation worsens, Zimbabweans have continued to hoard money and place it in more secure assets like Bitcoin. It is important to note, however, that the marketplace isn’t exactly flooding with investors. In the past 30 days there have been 146 Zimbabwean Bitcoin transactions. This is about the equivalent of 15 minutes worth of trading with the US market. This low liquidity is also causing wide swings in the Bitcoin exchange. Some sellers are still offering Bitcoin at close to the global average of $7,400. In addition to Bitcoin, Zimbabwean investors have also looked to equities to protect against future inflation. In the past year, the Zimbabwe Industrial Index has risen 322%, giving it a market capitalization of about $14.5 billion.