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Civil Unrest Forces Hong Kongers To Buy BTC At Premium Prices

15 August 2019 06:36, UTC
During the protests in Hong Kong, which are now starting to escalate towards unmanageable proportions, multiple citizens of Hong Kong have agreed once or twice to purchase Bitcoin at a much larger price than what the market demanded.

Currently, there are reports that citizens are willing to pay anywhere between $300 to $1000 more for each BTC as long as they can get their hands on it. All of this boils down to Hong Kong becoming a centerpiece of political uncertainty in the world. Nobody knows how China will react, and how the rest of the world will react to China’s reaction, therefore Hong Kongers are trying to stock up on as much decentralized currency as possible.

A similar case was seen in Argentina, where the election result shocked not only the local population but the local fiat currency, the peso as well.

Although the Hong Kong Dollar hasn’t depreciated relative to the dollar nearly as much as the peso did, the local population is still expecting the worst to come from China, and therefore are worrying about their financial situation in the future. With use cases like this, Bitcoin could be branded as a currency for political uncertainty, despite its volatility compared to other fiats.

Image courtesy of Travel Weekly