Massive Hong Kong Protests Give Bitcoin A Surprise Boost

By August 14, 2019 Bitcoin Business
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Bitcoin is yet to establish itself as the safe haven asset many see it as eventually becoming, falling sharply this week even as global stocks continue to slide—but in some places, people seem to be turning to bitcoin in times of crisis.

The bitcoin price, which has dropped over the last week by almost 10%, has been trading at a premium in Hong Kong, where massive anti-government protests have crippled the city's major international airports for two straight days.

Bitcoin, bitcoin price, Hong Kong, Hong Kong protests, image
The Hong Kong protests, which began as a fight against a proposed extradition bill but have evolved into a broader pro-democracy movement, appear to have pushed up the bitcoin price in the region.

Bitcoin was recently trading at a 4% premium in Hong Kong on the LocalBitcoins peer-to-peer bitcoin exchange which matches buyers to sellers, it was first reported by Bloomberg, a financial newswire.

Hong Kong airport has now resumed operations five days after protesters first arrived with violent clashes errupting late last night and two men believed to be Chinese agents assaulted.

Bitcoin advocates have been keen to encourage bitcoin's positive response to the unrest in Hong Kong.

"We learn Hong Kong will be put under martial law. Bitcoin goes up in price," bitcoin and crypto investor and co-founder of Morgan Creek Digital Assets Anthony Pompliano said earlier this month via Twitter. "The insurance policy against global chaos and instability is working."

bitcoin, bitcoin price, Hong Kong, Hong Kong protests, chart
The bitcoin price has been climbing over the last few months buts its latest rise has come to an abrupt halt after social media giant Facebook's plans for its libra cryptocurrency sparked the ire of global regulators. Coindesk

Meanwhile, in Argentina, where the country's incumbent president Mauricio Macri lost by a far greater margin than expected in primary elections last weekend sending shockwaves through the region's financial markets, bitcoin has also been trading at a premium.

Some have played down bitcoin's use in the country however, suggesting the U.S. dollar remains the alternative currency of choice.

"Before bitcoiners start using Argentina as excuse to yell 'buy bitcoin' ... Argentines want to protect themselves against the peso losing value versus the dollar. And for that, they buy dollars," Alex Kruger, an Argentina-born crypto trader, said via Twitter.

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