As you may know, the political situation in Hong Kong is pretty unstable right now. This is also affecting the market. During these times of political uncertainty, traders using the P2P platform LocalBitcoins are paying around $300 USD more to buy a single Bitcoin.
This represents a premium of 2%. Obviously lower than the famous Kimchi Premium of South Korea, the value is still significant.
Recently, Argentina, which is facing a high inflation and now has the market under distress as the liberal president Mauricio Macri struggles for reelection, also had a similar problem.
Local investors dislike the other presidential candidates, but the population does not seem to be siding with Macri, according to the results of the primary election, which is causing the markets to go down in value and trading of Bitcoin to become more expensive.
What can be seen in both these events is that Bitcoin is fulfilling its prophecy of being treated as a kind of a safe haven asset. When the local economy is in any kind of turmoil or there is political unrest for investors, prices tend to go up, even if only locally.
According to Arca’s CEO Rayne Steinberg, BTC is becoming an important asset to be protected from the devaluation of national fiat currency and also as a last resort in cases where the local market seems to be moving in the wrong direction.
This means that prices will possibly continue to rise when the next big recession hits the world and it looks like this event is not so far away from us right now.