Cryptocurrencies have gotten exponentially popular and valuable at the same time, over the past few years. While the world’s economy was crippling and struggling due to Covid-19, we saw a spike in the value of popular cryptocurrencies such as Bitcoin and Dogecoin.
The pattern over the past year was a really interesting observation as people placed their trust and faith into cryptocurrencies, which aren’t even a tangible thing.
Perhaps this trend can be explained by the fact that people, who have already expressed their annoyance and frustration towards the conventional centralized monetary system, saw this as an opportunity to escape that system. This argument extends further to explain why people in the developed and developing countries alike, have shown interest in cryptocurrencies.
Conventionally, you would expect people from first-world countries to be the only ones showing interest in a currency that relies on blockchain technology; however, that is not the case. People from developing countries such as Zimbabwe have also thrown their weight behind the concept of cryptocurrencies, as they see it as a way out of constraints associated with their traditional monetary system.
What is Golix and why is it so popular in Zimbabwe?
Golix is a Zimbabwe-based bitcoin-exchange startup that allows you to buy and sell cryptocurrency. It initially took off in Zimbabwe but later on started expanding into other countries as well. There are a number of reasons that make Golix so popular in Zimbabwe.
Dependence on Imports
To begin with, the economy of Zimbabwe is highly dependent on imports, which means that they have to acquire a lot of products and services from foreign countries. Since Zimbabwe imports the majority of its products, the businesses and people in Zimbabwe need a generally acceptable currency that can be used for such transactions. Since Zimbabwe’s own currency has failed to play that role, the gap is fulfilled by cryptocurrencies, which makes the role of an exchange such as Golix very important. The importance of this role was further stimulated as banks brought in restrictions to make it difficult to carry out transactions.
Remittances are when people of a country work abroad and send a proportion of the money back home. Usually, countries where the opportunities are not enough to cater the workforce, have high amounts of remittances. The Zimbabwean economic crises compelled many people to seek work in foreign countries and send earnings back in the form of remittances, to feed their families.
Since the influx of remittances in Zimbabwe is particularly high, Golix has become an important platform to transfer the remittances. Conventional transfer methods are extremely slow and the fees/charges associated with those platforms make them infeasible. Consequently, Golix has also emerged to fill in the gap that conventional remittance transfer mechanisms tend to leave.
We acknowledge that there’s a lot of volatility associated with cryptocurrencies; however, the people of Zimbabwe find it relatively stable, compared to their own currency. With their own currency regularly fluctuating to unpresented levels, the people of Zimbabwe realize that saving money in their own currency would cause them to lose the real value and purchasing power, making cryptocurrencies a relatively better alternative.
Lastly, just like other parts of the world, Zimbabweans are also intrigued by how lucrative the trading of cryptocurrencies is. All across the world, people make short-term, medium-term, and long-term investments, in order to make money off the volatility of cryptocurrencies, especially Bitcoin. Similarly, people in Zimbabwe are also inclined towards it. Perhaps what could aid them in their trading are platforms such as Big Money Rush, which allow you to utilize automated trading mechanisms to make money off the volatility of cryptocurrencies.