Price falls but bitcoin price rises to record high of $ 75,000 in Zimbabwe

Price falls but bitcoin price rises to record high of $ 75,000 in Zimbabwe

Bitcoin has been subject to a major correction in the past five days. The crypto is now being traded again for less than 10,000 dollars. Bitcoin lost about thirty percent since the peak of $ 13.7000.

We’ll explain in a later article that this correction is not bad, but even normal.

Zimbabwe policy is responsible for price increases

But the course is not falling everywhere in the world. In Zimbabwe, the demand for bitcoin continues to rise, trading is now even against a premium of 650 percent on the peer-to-peer trading platform LocalBitcoins Zimbabwe! The bitcoin with the highest price is a whopping 75,000 US dollars.

The collapsed economy and the oppressive policy of Zimbabwean government means that some of the Zimbabweans who can afford it prefer to keep their value in other currencies. But the regime does not agree. There has recently been a complete ban on having foreign currencies.

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Last week the Zimbabwean government reintroduced its Zimbabwean dollar in a new policy change. The reason? The government wants the influx of US dollars to be stopped. Whether this is a good or a bad measure is something we leave aside, at least the locals are not happy with it. We even look back with nostalgia at the time when the Swiss dinar, the Iraqi currency, was the standard.

Cryptocurrency is the digital version of old Swiss Dinar: The unstoppable money circulating without the government’s consent. Watch #bitcoin usage and prices spike in Zimbabwe, where, like everywhere else, “the full faith of government” is just economic jargon.

– “Laolu Samuel-Biyi (@samuel_biyi) June 24, 2019

Cyrptocurrency trade illegally

There is another reason why a bitcoin is so expensive on LocalBitcoins Zimbabwe. It is illegal to trade cryptocurrency in Zimbabwe. In addition, last year it banned all local stock exchanges operating in the country. As a result, investors have switched to P2P platforms (peer-2 peer, person to person). At P2P no administration is kept by a third, central party. Trading takes place directly between two people.

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Trading volume P2P is rising

Governments worldwide call everything about cryptocurrency. The one wants to ban it, the other wants stricter measures and other governments are more lenient. In other words, a global consensus has not yet been reached. But governments can also make a mess of it, for which normal residents must bear the consequences. In countries where, to put it mildly, the economy is not doing well, you can see that P2P platforms are popular.

Zimbabwe is not a separate case in this. In South American countries such as Venezuela, Argentina and Brazil, a shift towards bitcoin is also visible. Trading platforms such as LocalBitcoins also achieve record volumes, but there is a possibility that this will not take long. LocalBitcoins removed the option to pay in cash from their platform last month. Perhaps a shift is visible towards decentralized exchanges (DEX). With a DEX the trade takes place between buyer and seller, and the coins are not first stored with a third party.

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