You may have heard the news that Bitcoin has reached USD $13000 in Zimbabwe. Here is the reason why.
Zimbabwe uses a multi-currency system and not the Zim Dollar as others still think. Zimbabwe is under-going a 2nd economic collapse and right now and the country is in a cash crisis. Cash is unavailable in banks and one has to queue for hours only to be given $20 per week in cash. On the black market to get cash you have to pay a premium on top of the value of the cash you want which is normally plus 40%. USD$1 =USD1.40 under normal terms.
With Bitcoin's hiked prices its as a result of non cash means being used to purchase Bitcoin and resulted in such a price. The bitcoins were probably sold at normal price and the premiums would have led to the hiked price. Premiums are resulting from unavailability of cash locally and difficulties in externalising cash to buy Bitcoins from the rest of the world. The premiums in such cases may exceed that normal 40% for local non cash transactions.
Mugabe has taken the country for his advatage for far too long. Dont even understand how he is still alive
Hope he resigns the next few hours. It seems SADC wants to reinstate him.