Escalating Protests in Hong Kong Reinforce Bitcoin’s Safe Haven Status

Asia Blockchain Review
August 21, 2019

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.

Bitcoin Sellers in Hong Kong Demand Premiums

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.

Bitcoin Proves Reliable Amid Tougher Sanctions

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. 


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Crypto Futures: Opening the Doors to SEA’s Crypto Market
    Defi and crypto futures addresses that market volatility, opening the door to greater crypto trading...

    December 20, 2019

    Blockchain-based CBDC: A Game Changer for SEA’s Central Banks
    In this article, we explore the concept of a CBDC and look at related developments involving central...

    December 11, 2019

    SEA: Neutralizing North Korea’s Crypto Threat
    In this article, we will be looking at the use of cryptocurrencies by North Korea, some of which may...

    November 21, 2019

    Singapore: Leading the Way for IEO in SEA
    All in all, it is clear that Singapore has seized the global IEO mantle and is leading the way for S...

    October 27, 2019

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us