Why Zimbabweans Are Turning to Cryptocurrency
Once more civil unrest seizes the African country of Zimbabwe and citizens are worried about the loss of value in their savings. Can cryptocurrency save them from their problems?
The installation of a cryptocurrency ATM isn’t the first step Zimbabwe is taking towards their investment into a digital coin future. But to understand how cryptocurrency is saving the day, we have to take a look at this African country’s history.
Zimbabwe’s troubled past
The unfortunate events that transpired after the election of Robert Mugabe in the 1990’s lead to what is known as extreme hyperinflation. These events included the forced land acquisition of owned farms, heavy Western sanctions, decline in public health and overall mistreatment of the Zimbabwean populace. All of these were in some way related to one another, if not a direct result of. This all lead to the decline of value on the Zimbabwean Dollar. At one point it cost over 45,000,000,000 Zim Dollars to purchase a single loaf of bread. Eventually the country switched to US dollars, solving the problem at hand. However, the aforementioned events basically decimated the country, ruining the economy in the process.
The current problem
Now, once again civil turmoil has resulted in a coup d’etat that has taken Robert Mugabe out of power. This has lead to a the decline of buying power of the US Dollar in the country. Zimbabwean citizens are all too familiar with the events taking place and are seeking ways to prevent the loss of value in their saved currency. A large part of the problem is the lack of available physical money, leaving the populations funds in banks where they continue to lose value daily. The best solution seems to be Bitcoin.
How cryptocurrency is saving the day once more
Zimbabweans unanimously agree that they would rather invest in the fluctuating markets of Bitcoin and altcoins than rather watch the guaranteed decline of their Fiat currency. The Harare (Zimbabwe’s capital) coin exchange Golix.io has seen a rapid increase in Bitcoin transactions, as citizens invest in digital currency. This has resulted in the current price of a Bitcoin (on golix.io) to be double that of global markets.
The spark of interest in cryptocurrencies in African countries is stemming from a lack of trust in local government and currency. Perhaps this represents a defined use of digital coin: a go-to solution for citizens of economically declining countries.
This nation wide event has resulted in a lot of global and local attention, leading to more and more people learning about the potential of cryptocurrencies. As global understanding rises, global investment in Bitcoin and the altcoin rise. Who knew that economic turmoil could be good for cryptocurrencies?
One ATM. Maybe another soon?
Of course the demand for cryptocurrencies has lead to the installment of a Bitcoin and Litecoin ATM in Harare. This makes Zimbabwe one of two African countries with an ATM of this kind, the other being Djibouti. This is great news for cryptocurrency, and as the economy of Zimbabwe calls for it, more ATM’s are likely to appear.
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