More

    Hong Kong Residents Turn to Bitcoin Amid Political Uncertainty as BTC/HKD Spread Continues

    As much as cryptocurrency is used across the world as a store of value, a means of payment and an investment tool, it has also come in handy for people to use in times of crisis, economic or otherwise, as shown by the example of Venezuela who launched their own national crypto after suffering from hyperinflation last year.

    Now it seems crypto will work its magic in Hong Kong which is currently experiencing a tense political climate following protests against the proposed extradition law within the region. The law in question would give the authorities in Hong Kong the right to deport individuals suspected of criminal activities to the Chinese mainland. Protests are entering their second week and the atmosphere doesn't seem to be letting up anytime soon. The tense atmosphere has led to a feeling of unrest among the affluent Hong Kong residents who have taken to moving their wealth offshore in the event of any further crisis.

    “Some Hong Kong tycoons have started moving personal wealth offshore as concern deepens over a local government plan to allow extraditions of suspects to face trial in China for the first time, according to financial advisers, bankers, and lawyers familiar with such transactions,”

    said crisis.

    Taking Precautions

    As a result of this, bitcoin prices within Hong Kong have soared significantly and the token is now trading between $75 and $150 above the global average ever since the protests began two weeks ago. Besides the movement of funds out of Hong Kong and the soaring crypto prices, the region is facing liquidity issues as trade tensions are currently ongoing between China and the US and have not yet been resolved. Should this controversial bill be passed, it is believed that more people will move their capital out of Hong Kong which will further complicate their liquidity situation and harm the Citizens.

    Hong Kong authorities, however, seem determined to push his bill forward and while it is being delayed for now due to the intense backlash and protests, the hope to push it to the legislative assembly soon. Ironically the state of unrest has likely contributed to bitcoin trading seeing a surge within Hong Kong with is currently trading $100 above the global average there. BTC/HKD trading volumes have steadily been going the last few weeks which shows that the problem is not just the capital outflow from HK but also the fact that people are hedging their funds against Bitcoin in the face of political uncertainty.

    As much as many do not see value in cryptocurrency as the means of payment or a store of wealth, it has shown time and time again that it is an easy way to hedge funds in times of crisis as compared to certain other assets they are easy to acquire and much easier to move and store. This happened in Venezuela, is rumored to be happening in Italy in the next few years and now is taking place in Hong Kong. Clearly even the world governments have taken notice of the potential of cryptos to hedge against hyperinflation and uncertainty as evidenced by the cryptocurrency that was launched in Venezuela and hopefully the people of Hong Kong can find some economic solace in the same vein.

    Bitcoin (BTC) Live Price

    1 BTC/USD =$9,361.1444 change ~ 2.97%

    Coin Market Cap

    $170.25 Billion

    24 Hour Volume

    $7.47 Billion

    24 Hour VWAP

    $9.09 K

    24 Hour Change

    $277.7614

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Tokoni Uti
    Tokoni Uti
    Tokoni Uti is a Lagos-based writer with several years of experience. Her work has appeared in the Huffington Post, the Los Angeles Free Press and the San Diego Free press among others. She is a graduate of Bowen University.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,267FansLike
    2,734FollowersFollow
    4,094FollowersFollow

    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    IBM Wins ‘Self-Aware' Token Patent, It Can Record Offline Transaction Data To Upload Later

    IBM was given a US patent for a “self-aware” token that’s capable of recording its own data for transactions. The patent was awarded on January...

    World’s Largest Oil Firm Saudi Aramco, Drops $5M Into Vakt's Blockchain Trading Platform

    A leading oil corporation from Saudi recently invested $5 million towards a blockchain based startup dubbed ‘Vakt’. Saudi Aramco Energy Ventures (SAEV), initiated the...

    China’s Crypto Affinity Drops As LocalBitcoin Volume Drops To 2-Year Lows

    China’s BTC trading volumes have hit an all-time low in two years with the peer to peer (p2p) exchanges on LocalBitcoin. As of the...

    Bitfinex Ordered To Freeze $860k Bitcoin Linked To BitPaymer Ransomware By UK Courts

    A High Court in the United Kingdom has issued a freeze order on Bitcoin acquired via a ransomware attack against a Canadian-based firm. The...

    TradeStation Users Now Have Access To CME, Bakkt Bitcoin Futures Options Trading

    TradeStation is an online brokerage firm for securities and on 27th January announced that its clients can now trade Bitcoin Futures Options from CME...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.