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Bitcoin surges in Zimbabwe after military seize power

timeslive.co.za

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Re: Bitcoin surges in Zimbabwe after military seize power

#111

Post by sp527 »

chesimov wrote: post #101
pwaai wrote: post #20

I feel like there are whales that simply manipulate the price based on news. There's little evidence to suggest bitcoin has any usage in zimbabwe in practical day to day usage. Therelies the problem with bitcoin, why would someone in zimbabwe pay 1 week of their salary to move 3 weeks of pay and still not be sure if the money will still be there tomorrow?

If you read about what has already happened in Zim, you'll understand why people would do that sort of thing with ease at even the thought of upheaval. I agree with you on the whales but man... back in the 2000s people were desperately trying to change fiat into anything at all that would hold value. Consumer goods like dvd players, you name it. Hyperinflation is no joke. On a side note in places like SA bitcoin is v…

If people in Zimbabwe were buying consumer technology as a store of value, that suggests a very poor financial sense to desperation ratio.

Re: Bitcoin surges in Zimbabwe after military seize power

#112

Post by sp527 »

Apocryphon wrote: post #109

Could there be a future type of financial vehicle based on news? Since political instability has market effects. From what I understand, prediction markets are simply like sports betting. But what I'm thinking is something that's pegged to currency / commodity price fluctuations. Did the Saudi purge similarly boost crypto value as well?

You’re basically describing derivatives, which represent a multi-trillion dollar market...

Re: Bitcoin surges in Zimbabwe after military seize power

#114

Post by tmalsburg2 »

robk wrote: post #104

I find it hard to believe ANYONE wants to take the other side of this and sell bitcoin for local currency. In cases like this or Venezuela, even at exorbitant prices I can't see why anyone would want to hold the local currency.

The article says that there is no local currency. Zimbabwe adopted USD and SA rand some years back and the bitcoin exchange sells BTC for USD.

Re: Bitcoin surges in Zimbabwe after military seize power

#115

Post by alethiophile »

ActsJuvenile wrote: post #45
Pfhreak wrote: post #42

Earlier quoted context omitted.

> For Bitcoin to succeed, it needs to conquer the US market adoption Genuinely: Why is that axiomatic? Why is there no path that is, reductively, in parts of the world where electronic payments are already normal, bitcoin becomes the instrument?

Because Zimbabwean consumer doesn't influence USA; but USA consumer influences rest of the world. I can't think of any technology besides micro-finance that has trickled-up to USA.

If Bitcoin gains significant adoption overseas, that pushes up Bitcoin's value everywhere, USA included; geographical differences in price will be arbitraged away. The increase in price might or might not lead to greater US adoption, but it'll still benefit US holders.

Re: Bitcoin surges in Zimbabwe after military seize power

#116

Post by lloeki »

craigc wrote: post #87
xadhominemx wrote: post #59

Earlier quoted context omitted.

No, I wasn't joking. I was asking sincerely, if you're reason for holding bitcoin is that you want to be able to buy goods next week without worrying about inflation, why not just buy the goods now and avoid the risk of owning bitcoin.

But if you spend all your money on goods and then you need something else in a week or two then what do you use to buy it? Sell/trade the goods you already purchased? I think it makes sense to hold on to some form of currency.

> some form of currency

Which form? At some point Zimbabwe economy was (is?) so fucked up that currency does not hold any value, so barter is all there is. Money literally evaporates overnight:

> The peak month of hyperinflation occurred in mid-November 2008 with a rate estimated at 79,600,000,000% per month

https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe

Re: Bitcoin surges in Zimbabwe after military seize power

#117

Post by rhizome »

xadhominemx wrote: post #59
CamelCaseName wrote: post #53

Earlier quoted context omitted.

His joke is that Zimbabwean dollars are toilet paper.

No, I wasn't joking. I was asking sincerely, if you're reason for holding bitcoin is that you want to be able to buy goods next week without worrying about inflation, why not just buy the goods now and avoid the risk of owning bitcoin.

doesn't work for apples or prescriptions

Re: Bitcoin surges in Zimbabwe after military seize power

#118

Post by cwkoss »

robk wrote: post #104

I find it hard to believe ANYONE wants to take the other side of this and sell bitcoin for local currency. In cases like this or Venezuela, even at exorbitant prices I can't see why anyone would want to hold the local currency.

People who bought previously (and profited) and need Zim fiat would sell to people who now want to buy to preserve Zim fiat.

Re: Bitcoin surges in Zimbabwe after military seize power

#119

Post by craigc »

lloeki wrote: post #116
craigc wrote: post #87

Earlier quoted context omitted.

But if you spend all your money on goods and then you need something else in a week or two then what do you use to buy it? Sell/trade the goods you already purchased? I think it makes sense to hold on to some form of currency.

> some form of currency Which form? At some point Zimbabwe economy was (is?) so fucked up that currency does not hold any value, so barter is all there is. Money literally evaporates overnight: > The peak month of hyperinflation occurred in mid-November 2008 with a rate estimated at 79,600,000,000% per month https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe

Exactly. I meant Bitcoin or other crypto currency
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