As Bitcoin’s valuation continues to soar in inverse correlation with stock markets and other assets vulnerable to turbulent economic and political conditions, so too has its reputation as a safe haven currency.
As reported by CCN Markets, demand for Bitcoin is surging amid crippling political turmoil in places like Hong Kong and Venezuela, with the cryptocurrency having previously exceeded US$6,000 in May in correlation with rising trade war tensions between the United States and China.
On the back of intensifying anti-government protests, Hong Kong sellers of Bitcoin on peer-to-peer (P2P) exchange LocalBitcoins are demanding a premium of between HK$1,170 and HK$39,000 (US$150 and $US5,000).
Hong Kong also recently slashed its interest rate for the first time in a decade, reducing its target to 2.5% and joining a growing list of central banks worldwide that are cutting their benchmark targets.
All flights departing Hong Kong International Airport were recently grounded after protesters swarmed the terminal and disrupted operations.
In Venezuela, Bolivar-to-Bitcoin trading volumes surged to 73 billion for the week ended August 10, smashing the previous record of 69 billion Bolivars set just a week earlier.
The record spending on Bitcoin came as the United States slapped Venezuela with tougher sanctions, after U.S. President Donald Trump signed an executive order freezing all Venezuelan government assets in the U.S.
With Venezuela’s future looking more uncertain than ever, Bitcoin has rapidly emerged as a relatively stable store of wealth in an increasingly unstable country.
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