Hong Kong Is Paying Higher Prices for Bitcoin Amid Political Unrest
William Suberg's original article for cointelegraph.com reduced by 75%
Bitcoin has begun trading at a premium in Hong Kong as continued political uncertainty produces a widely-reported spike in demand. Data from P2P Bitcoin exchange LocalBitcoins showed traders paying around $300 more per coin than elsewhere on Aug. 14, which translates into a premium of around 2%.
Hong Kong is the latest jurisdiction to see investors stump up a higher implied USD price for the cryptocurrency, with Argentina notably in a similar situation this week. Bitcoin premium suggests demand for a politically-neutral digital money. Both events underscore an increasing tendency to treat Bitcoin as a safe haven asset in times of fiat unpredictability.
"Bitcoin is becoming the asset of last resort in areas of extreme currency devaluation and political uncertainty," Rayne Steinberg, CEO of crypto hedge fund Arca, told Bloomberg Tuesday. The premium is down to liquidity, Dovey Wan, co-founder of crypto fund Primitive, commented on the Localbitcoins data. "The key diff is: In China there is sufficient local supply of Bitcoin but Argentina is lacking local liquidity," she summarized on Twitter earlier this week.
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Summarised crypto news.