Brad Chillum
Bitcoin trades at a huge premium on local Zimbabwe exchanges, as the country struggles through another bout of hyperinflation. Bitcoin is selling on the local exchange golix.com at $12500. The substantial premium, nearly double the price in the US, is most probably connected to the difficulty in obtaining access to other international exchanges.
The country has been in the news in recent years for its massive levels of inflation, often creating situations where locals are forced to carry entire backpacks of Zimbabwe dollars to the market for some simple groceries. In an economy where such inflation rapidly devalues whatever funds consumers have, an externally fixed currency like Bitcoin creates a stable and usable marketplace where none existed before.
Markets in nations with weak or very weak fiat currencies are driving prices for Bitcoin, as tens of thousands of new users capitalize on the ability to exchange goods and funds in a simple and clean way. Obviously, the market at this stage represents an arbitrage nightmare, depending on which side of the transaction a consumer is.
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