In the past few days the demand for bitcoin has skyrocketed on LocalBitcoin.com following the ban of foreign currencies in Zimbabwe, coupled with the rising state of inflation in their economy, although there had been some balance in the system it could be seen that there was an increased level of desperation as holders of the countries local currency who sought to protect the value of their funds and are did so through other forms of digital assets such as Bitcoin.
This price against the bitcoin whose actual price at the time of this event was about $10,000 has ensured a pathway of a huge boost in business for trades of cryptocurrencies in the country. This could clearly be attributed to the fact that the Reserve Bank of Zimbabwe has announced the reinstatement of the Zimbabwean Dollar which is to replace the multiple currency system that has been in use since 2009 when hyperinflation forced the country to abandon its local currency. The reintroduction has been largely met with a lot of criticism as to whether or not this was a move in the right direction. The return of the Zim Dollar might have done more harm than good if adequate measures have not been put in place to check any further inflation in the system.
To a large extent, Bitcoin might just be the way out of this messy economic state of the country gif many Zimbabweans as more locals seen accumulating as many as they could in a bid to find refuge. Although another segment has a different perspective, owing to the fact that these times can lead to an increase in scams, as unsuspecting persons who might want to join the train could end up losing their funds. Some others also share the view that cryptocurrencies are too volatile and unregulated saying that unless there is an infrastructural regulation within the country full-scale adoption would be almost impossible.
However despite the risks related to cryptocurrencies there is every indication that it is being referred to the Zim dollar, and although things might seem to have stabilized a bit there is no telling what might happen next.
