SPECIAL ARTICLES
the electricity in Venezuela is subsidized to the point that it is profitable to mine bitcoin or other cryptos . Venezuelan citizens are not the only ones who ’ ve turned to bitcoin . Argentina , Brazil , and Mexico have seen a dramatic increase in cryptocurrency activity . Although not nearly as severely as Venezuela , Argentina and Brazil are also suffering from inflation .
African countries like Zimbabwe are experiencing extreme political , economic , and social unrest culminating in a recent coup d ’ état . Zimbabwe ’ s own currency collapsed in 2009 . U . S . dollars , South African Rands , and a few other fiat currencies are being used instead . People in Zimbabwe have more faith in bitcoin because even fiat currencies like the U . S . dollar are hard to come by . The circulation levels are extremely low .
It seems as if mining bitcoin in Zimbabwe is too expensive because of high electricity costs . Apparently , there aren ’ t too many options or exchanges serving Zimbabwe . Golix , perhaps the only legitimate crypto exchange in Zimbabwe , has seen demand skyrocket while supply is very limited . This is one of the reasons why bitcoin prices remain significantly higher in Zimbabwe compared to international markets .
The Golix company profile mentions that it is practically impossible to conduct international transactions for the average person in Zimbabwe . In cases where it is possible , maybe for the relatively well-off citizens , the process is described as “ painful , time-lengthy , and expensive ”. Unfortunately , rampant corruption , especially in the underdeveloped countries of the world has robbed the people of inalienable rights including financial freedom .
Extremely low salaries and exorbitant prices have inflicted the third-world countries with abject poverty . Even in countries like Pakistan which are comparatively much better off than the vast majority of African nations , the average yearly income of white collar workers is only $ 14,358 . The fiat currency has been steadily declining in value against the U . S . Dollar and major international currencies . Although the majority of the population in Pakistan has not begun to adopt or take much interest in bitcoin or other cryptocurrencies , a new crypto called Pakcoin has been launched recently . Very few merchants are accepting it at the time of this writing , but these new initiatives might help pave the way for some sort of financial freedom and relief for the citizens of the third-world .
With the advent of globalization , availability , and accessibility of new technologies , it has become a lot of easier for people globally to conduct business . Digital currencies like Bitcoin could be the ultimate savior for dwellers of third-world countries , with the potential to be a lot more practical than local fiat currencies , especially when it comes to international commerce .
Omar Faridi omar @ coregroup . info
10 Core Magazine