eBusiness Weekly
Business Writer
The price of Bitcoin in Zimbabwe cannot be around the $13 000 mark as reported by a number of media outlets, according to Quartz.com. The digital news publication says the high price has only been quoted by a single Zimbabwean Bitcoin trader.
Quartz said Bitcoin brokers for Zimbabwe were trading at “normal” rates. “Golix appears to be the sole cryptocurrency exchange in Zimbabwe. But most markets that aren’t well served by exchanges, like Zimbabwe, usually have a thriving peer-to-peer scene. That’s what you see when you go to LocalBitcoins, the biggest global platform for peer-to-peer bitcoin trading. Zimbabwe’s LocalBitcoin brokers are quoting prices around $7 000, which is in line with the global price of bitcoin.
“It’s the brokers who offer to settle transactions in cash, instead of online payments or via bank transfers, who are demanding a steep premium in Zimbabwe. They are asking for $17 000 to $20 000 a coin from buyers who pay them in physical US dollars,” said Quartz.
“So what explains the inflated prices on Golix? It’s probably just low liquidity. Golix’s website shows that it traded just over 7 bitcoins in the last 24 hours, and about 147 coins over the last 30 days. That’s in contrast to tens of thousands of bitcoins traded over LocalBitcoins globally each month, or tens of thousands per day on the biggest US dollar exchanges, like Coinbase or Bitfinex.”
Bitcoin has been increasing in popularity in Zimbabwe due the foreign currency shortages as locals use the digital currency to make foreign payments.
