Zimbabwe leader Robert Mugabe has been removed from power as tanks roll into Harare. The Zimbabwe army has taken temporary control of the country to “target Criminals” and has detained the leader at his home. This comes after the 93 year old disappeared after he was challenged for power by his former vice president Emmerson Mnangagwa that sparked a bitter feud between the two. The takeover by the military was meant to ease the formal transition of power from Mugabe to Mnangagwa and is expected to see the world’s oldest leader step down in the coming months.
Mugabe lead the country from 1980-1987 as Prime minister and in 1987 became the executive President, a new position that saw the combined roles of head of state, head of government, and commander in chief of the armed forces. With his new power he dissolved parliament, declared martial law, and ran for an unlimited number of terms. He also eliminated the constitutional amendment, which basically gave him a stranglehold over the country.
By the mid 90’s Zimbabwe’s economic situation was becoming critical. Basic quality of life had declined.
This present instability saw Zimbabwe’s only Bitcoin exchange record an all time trading high of over $13,500. The news that Bitcoin prices have skyrocketed in Zimbabwe came as no surprise to most, as the country braces itself for a possible financial meltdown.
Now you may ask yourself why would anyone pay nearly double the current value of Bitcoin, but when you put things into perspective, you can understand why: value of money
Currently USD and the South African rand are trading for double their value within Zimbabwe. Under these circumstances it would only be normal for the value of Bitcoin to be almost double. Bitcoin does a great job of providing a safe haven to store money.
In times of economic, political, or military conflict, Bitcoin seems to be a very good storage of wealth. When a country struggles with political upheaval, people start to lose faith in traditional fiat currencies and look to alternatives to bridge the gap with the outside world. A person’s ability to continue to transact and have a safe and reliable currency is paramount to financial survival. Bitcoin provides a fiat alternative to countries like Nigeria, Argentina, Venezuela, and Zimbabwe just to name a few, and is expected to only continue to gain market share.