Bitcoin price surges in Zimbabwe amid the country's collapsing financial system

On November 19, 2017, Bitcoin’s price experienced a significant surge on the Zimbabwean exchange Golix, amidst the country’s collapsing financial system and political turmoil. This event is a stark illustration of how Bitcoin can become safe havens in times of national crisis.
 

Zimbabwe’s economy had been in a state of distress for years, characterized by hyperinflation and a lack of trust in the local currency. In November 2008, the inflation rate reached an astronomical 79.6 billion percent, rendering the Zimbabwean dollar virtually worthless.

The situation escalated in mid-November 2017 when the Zimbabwean military staged a coup d’état, taking control of the capital, Harare, and placing President Robert Mugabe under house arrest. The military action was aimed at preventing what they saw as an imminent violent and deadly civil war.
 

In the wake of the coup and ongoing political uncertainty, Zimbabweans turned to Bitcoin as a means of preserving their wealth. With the absence of a national currency—Zimbabwe had adopted foreign currencies like the US dollar and South African rand as legal tender in 2009—the demand for Bitcoin skyrocketed. The digital currency offered a semblance of financial stability and was out of reach from the country’s political and economic turmoil.
 

On Golix, the price of Bitcoin soared to $13,499, nearly double its rate in international markets. Just days before, on November 15, Bitcoin was trading at $13,010 in Harare. This price disparity highlighted the intense demand and limited supply of Bitcoin in the country.