Zář 28

How to Plug Intermediary Proliferation in the Bitcoin Ecosystem?

bitcoin is a cultural movement. bitcoin is for people. bitcoin is about principles.

…or at least, this is the proposition that CoinShares Chief Strategy Officer, Meltem Demirors, put forward in a recent Twitter thread. In it she poses the question, “how do we allow for more [Bitcoin] participation through intermediaries without losing the message?”


Not Your Keys, Not Your Bitcoin

Demirors points out the dichotomy between the bitcoin community’s ideals and the reality of much of the industry.

As a community, we value qualities like choice and access, self-sovereignty, privacy and consent, and we seek to remove rent-seeking. However, in reality, the majority of value in the industry that we have built is being captured by intermediaries.

New business models are emerging that cater to both the risk-taking, tech-savvy cypherpunks, and the risk-averse, technophobic ‘my dad’. However, ultimately, the power remains with those who control the coins.

Considering all of bitcoin mined to date, an estimated 17% is in third party custody. This is a conservative estimate, but even this percentage is pretty significant.

Intermediaries Centralize Risk

Demirors continues to explain then when a small number of firms hold a large number of assets it centralizes risk.

With legacy finance, this is dangerous but not deadly. Bank bailouts are common, and the US government created the category of SIFI (or systemically important financial institution) in response to the 2008 financial crisis.

However, with bitcoin this is both dangerous and potentially deadly, argues Demirors.

When Binance’s hot wallet containing 0.03% of BTC in circulation got hacked in May, a roll-back was mooted but quickly rejected. But what would the position be if an intermediary holding 5% (or even more) of all bitcoin got hacked?

After the Ethereum DAO hack, 97% of ETH holders voted for the chain to be rolled back, against a minority who believed that this went against the immutability of the blockchain.

Finally, Demirors asks about a time when institutions put BTC into cold-storage and instead trade paper bitcoin depositary receipts (BDRs). Is this still BTC? Demirors isn’t so sure.

Which takes us back to our initial proposition.

bitcoin is a cultural movement. bitcoin is for people. bitcoin is about principles.

So how do we allow for more participation through intermediaries without losing the message? Let us know below. 


Images via Shutterstock, Twitter: @Melt_Dem

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Zář 22

Bitcoin (BTC) Metrics Pointing to Bullish Returns

Many analysts over the years have said that bitcoin is a speculative bubble, comparing it to tulips or beanie babies. However, BTC is still here and doesn’t look to be going anywhere. Here are a few reasons why bitcoin was and continues to be, a solid investment.


The Bitcoin “Bubble” refuses to Pop

Bitcoin, since it’s launch in 2009, the price has been rising. Other famous bubbles like tulip mania in the 1600s have lasted for only a few years, whereas BTC has been going strong for over a decade now. Not only has the price increased, but the trading volume per day has also grown just as exponentially.

Total bitcoin (BTC) gains till date

Bitcoin also has been one of the safest assets to invest in over the past ten years. If you dollar cost averaged buying BTC weekly, there isn’t a single year where you wouldn’t make a return on your investment.

Investing in cryptocurrency has fundamentally changed the financial world. Previously, investing was something only licensed venture capitalists could do. Regular people were completely unable to get in on groundbreaking, up and coming technology. bitcoin has leveled the playing field, allowing anyone with an internet connection to make big gains.

BTC vs the world

Buying bitcoin has also outperformed every single major tech stocks in past years. In terms of percent return on investment, BTC has done nearly 40x better from 2013 – 2019 verses the top tech stocks since 2009.

When comparing bitcoin to global currencies, BTC ranks roughly 25th in the world in terms of market cap. This puts BTC just ahead of some fiat currencies like the Colombian Peso and New Zealand’s dollar.

Many people say bitcoin is dead because it’s dropped half of its value in the past year and a half. However, you could also say BTC has increased tenfold over the past three years. Short term, its safe to assume the price of crypto-currencies will continue to be extremely volatile. But one thing is for sure, bitcoin and other cryptocurrencies aren’t going anywhere anytime soon.

Where do you see BTC going for the rest of the year? Will we see a similar pattern to the past, or will Bitcoin shake things up? Let us know your thoughts in the comments down below!


Images courtesy of Shutterstock, Bitcoinist Media Library

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Srp 19

P2P Bitcoin And Dash Transactions Soar In Venezuela

Venezuela’s inflation rate topped 130,000% in 2018 as peer-to-peer Bitcoin and Dash transactions reached new all-time highs month after month. 


Bitcoin Thrives in Broken Economies

For the past few years, the Venezuelan economy has been rocked by political and economic instability that has led to shortages of food and medicine, nationwide blackouts, riots and unstoppable hyperinflation that rivals that of the Zimbabwe dollar in the 1990s. 

In fact, Venezuela had the highest inflation rate of 2018 and at its peak, it was 130,060%. Surprisingly, in May 2019 Venezuela’s central bank publicly published economic data for the first time since 2015 and the data shows that Venezuela’s inflation rate in 2016 was 274%, 863% in 2017 and 130,060% in 2018. 

Hyperinflation in Venezuela is so bad that most citizens have to spend all their money immediately because if they hold off for a few days the currency will continue to lose value against the rising price of basic daily staples. 

The majority of Venezuelans do not trust the bolivar, and in the past those who were unable to spend their income on the spot sought to purchase gold or the US dollar as a hedge against inflation.

Both options come with risks as organized crime and price gouges are always prepared to take advantage of those holding physical currency. 

Crypto Finds a Real World Use Case in Latin America

Fortunately, cryptocurrencies are easier to ‘hold’ and have become a safer option embraced by a growing number of Venezuelans. Both Dash and Bitcoin have become popular mediums of exchange and store of value currencies. 

A recent study from the Ledger Journal investigated the role Bitcoin played in countries experiencing economic uncertainty and contributing analyst Jackie Johnson found that: 

In countries where residents are under pressure from economic mismanagement, Bitcoin trading becomes critical. Two factors drive Bitcoin trading: one, there is pressure to purchase Bitcoin using local currency before it loses even more value; and two, there is a need to redeem for the local currency either past purchases or purchases made outside the country by friends/family, enabling residents to cope with rising prices. This results in an increase in Bitcoin trading in the local currency.

Johnson’s findings are supported by data from LocalBitcoins which shows explosive growth in the number of peer-to-peer Bitcoin transactions and all throughout 2018 and 2019 Venezuela and Argentina have continuously notched new all-time highs for peer-to-peer Bitcoin transactions. 

Despite the growth in Bitcoin transactions Venezuelan economist Danial Arraez says that mass adoption is still a distant target. Arraez said: 

In the country there is still not enough adoption of bitcoin, because with few exceptions, cryptocurrencies, including bitcoin and altcoins, are, in most cases, a proxy currency (substitute) to facilitate fiat exchange, with the USD-VES pair being the most traded, but without being able to set aside the VES-CLP (bolivars in Chilean pesos), VES-COP (in Colombian pesos), VES-ARS (in Argentine pesos), VES-BRL (in Brazilian real) and VES-PEN (in Peruvian sol) pairs.

Interestingly, a Rhythm, a popular crypto analyst recently tweeted that if a person held $1 million worth of Venezuelan bolivars since 2013, this amount would now be worth less than $0.37. 

Bitcoin might not have reached the level of mass adoption in Latin America, but if the situation doesn’t change it appears that will only be a matter of time before it does. 

Do you think Bitcoin mass adoption will first occur in Latin America or a different region? Share your thoughts in the comments below! 


Images from Bitcoinist Image Library, Twitter: @RhythmTrader, Shutterstock

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Srp 08

Bitcoin Could Copy Gold’s 2008 Boom And Bust Before All-Times Highs: Messari

Bitcoin could drop dramatically in the short term before experiencing a historic rise to new heights, one of the cryptocurrency industry’s best-known researcher says.


Bitcoin Mimicking Gold ‘Not Surprising’

Adding his weight to the current discussion on Bitcoin’s utility versus gold, Dan McArdle, co-founder of analytics firm Messari, said the cryptocurrency could copy the precious metal’s behavior in the coming years.

Specifically, he said in social media comments on August 7, BTC/USD might repeat what gold did after the 2008 financial crisis.

“I would not be surprised if BTC performs like gold did 2008-2011,” he wrote. 

Initial spike on fears of crises, big fall as liquidity crises actually sets in, followed by [an] even bigger rise as real debt/sovereign/currency fears take hold.

McArdle referenced fresh comments on gold by Raoul Pal, the serial asset manager who recently presented a buoyant outlook for both bitcoin and gold on the Stephan Livera podcast.

On the topic of gold’s current return to form in line with Bitcoin, he said markets were preparing for the dollar’s own winning streak to come to an abrupt end. The question, he argued, was when it would happen.

“Gold is rightly doing its job, sniffing out a BIG problem and is exploding higher, outperforming even the super strong dollar as gold begins to price in an end game of an eventual MASSIVE readjustment of the dollar (in 12 months? 18 months?),” he tweeted. 

Businesses Vouch For BTC As Safe Haven

As Bitcoinist reported, Bitcoin price bull runs since April have reignited a fierce debate about its potential long-term use as a gold-like safe haven asset.

More and more figures continue to go on record to say a shift into Bitcoin for investors looking for a hedge against inflation is happening, borne from a need to exit the Chinese yuan in particular. Those included Circle CEO Jeremy Allaire, as well as multiple consultancy executives this week.

Others remain opposed, among them well-known gold bugs such as Peter Schiff, who has doubled down on his opinion that gold is ultimately far better as an investment than cryptocurrency. 

“The Chinese aren’t buying Bitcoin as a safe haven. Speculators are buying, betting that the Chinese will buy it as a safe haven!” he claimed this week in the latest of a series of suspicions regarding current pro-Bitcoin narratives.

Schiff spent an hour arguing over the issue with Bitcoin proponent Anthony Pompliano in a CNBC debate last week. 

What do you think about Messari’s outlook for Bitcoin? Let us know in the comments below!


Images via Shutterstock

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Srp 04

Bitcoin Price Could Surpass $15,000 This Week: Max Keiser

Early Bitcoin investor Max Keiser tweeted today that he foresees Bitcoin price smashing through the $15,000 mark sometime this week amid troubles with centralized government and banking


The Bulls are Back in Town

The price of Bitcoin has made a noticeable comeback this summer, coming from a low of $5,500 in early May to a top of nearly $13,000 in late June. Since then, the markets have cooled off putting the price of a single Bitcoin to $10,700 at the time of writing. On top of this bullish trend, BTC dominance has also been on the climb, from bouncing around 50% to over 65% as of today.

Max Keiser, Founder of Heisenberg Capital, has been buying Bitcoin since the days it was worth only a dollar. Over the years he has been very vocal in his support for cryptocurrencies, encouraging others to invest and building within the space. He also is a strong believer in Bitcoin Maximalism, talking often about how the value in the cryptocurrencies space will flow into Bitcoin. Today on Twitter, he made his predictions on where he sees the price of BTC going in the short term.

While this prediction may be a bit optimistic, it is based off a major selling point of crypto-currencies over their centralized, state-backed counterparts; decentralization.

Separation of money and state

Bitcoin is unique, its the first value transfer system that wasn’t controlled by a third party actor. Supporters have been said for years that a money system that wasn’t controlled by a central government is a much better alternative fiat currencies as there would be a safe, stable supply and be immune from federal monetary policy. And in the long run, that may hold true.

Fears of a worldwide economic turn down have been spreading between economists lately, as the US-China trade war escalates and Britain heads faster and faster towards a no-deal Brexit, something that would send the region’s economy into chaos.

On top of these uncertainties affecting the market, many economists are predicting a general economic slowdown due to the explosion of several world economies over the last decade. In some countries, such as Venezuela and Zimbabwe, have experienced huge inflation rates over the last decade. Even with Bitcoins wild price swings, it can still be better than their local currencies. As economies all over the world run into more and more issues, many people may start to consider decentralized alternatives such as BTC or Bitcoin Cash to save or spend their money.

Where do you think Bitcoin’s price will be going to the next few weeks? Are worldwide economic issues good for Bitcoin? Let us know down in the comments below!


Images courtesy of Bitcoinist Media Library

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Čvc 14

Wells Fargo Won’t Allow Customers To Buy Bitcoin

Wells Fargo, a huge traditional bank founded in 1852 to provide banking services, and mail delivery through the Pony Express, has recently come out stating that it does not allow its customers to purchase Bitcoin with their own funds.


Wells Fargo ‘Does Not Allow Transactions Involving Cryptocurrency.’

Wells Fargo’s decision diverges from other leading financial institutions, who are becoming increasingly pro-crypto technology. For example, Nasdaq CEO Adena Friedman believes in the value of cryptocurrencies and predicts that Bitcoin could be the “global currency of the future.”

The CME Group saw Bitcoin promise when it started exchanging Bitcoin futures contracts in December 2017.

On the other hand, after bashing Bitcoin for years, JPMorgan Chase CEO Jamie Dimon made a U-turn by regretting having called the cryptocurrency a fraud, and now JPMorgan Chase is getting ready to release its own cryptocurrency.

Most recently, during his second day of testimony in the U.S. Senate, Jerome Powell’s testimony legitimized Bitcoin and as a store of value.

In contrast, Wells Fargo is turning in the opposite direction. Specifically, Wells Fargo displays its anti-Bitcoin stance by not allowing its customers to perform transactions involving cryptocurrencies, as the tweet below shows,

This prohibition is contrary to Wells Fargo’s vision, which states, “Customers can be better served when they have a relationship with a trusted provider that knows them well, provides reliable guidance, and can serve their full range of financial needs.”

However, by forbidding a customer from performing transactions in Bitcoin, Wells Fargo is not serving its customers’ “full range of financial needs.”

Bitcoin and other cryptocurrencies are risky and volatile

In June 2018, Wells Fargo banned the purchase of Bitcoin and other crypto-assets using Wells Fargo credit cards. When the ban was announced, a company spokesperson stated,

“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency […] We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”

When Wells Fargo claims that Bitcoin and other cryptocurrencies are risky and volatile, it may be forgetting its prominent and infamous role during the 2008-2009 financial crisis, when markets collapsed. As a result, millions lost their homes, and millions lost their jobs, producing economic mayhem all over the world.

But astonishingly, although Wells Fargo was a contributor to one of the largest-ever financial crises, and after a series of financial scandals, U.S. taxpayers had to bail out the bank.

Wells Fargo received USD 25 billion of Emergency Economic Stabilization Act funds through a preferred stock purchase by the U.S. Treasury Department. As CBS News put it,

“Wells Fargo hit the jackpot. It was one of the first banks to get bailout funds – the biggest amount awarded in a single shot: $25 billion tax dollars.”

Nevertheless, to return to its admirable roots and to satisfy its customers’ needs, Wells Fargo should join the bandwagon of the new economic model, which requires a decentralized, borderless, and secure digital currency, such as Bitcoin.

Why do you think big banks such as Wells Fargo do not allow transactions involving Bitcoin? Let us know in the comments below!
____________________________________________________________________
Images via Twitter/@Ask_WellsFargo

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Čvc 08

Bearish Weekly Close Could Create More ‘Buy Bitcoin’ Opportunities

Bitcoin and crypto markets have been mostly sideways over the weekend. There has been little movement in either direction for BTC and most of the high cap altcoins and all eyes have been on the close of the weekly candle.


Bitcoin Price Closes Below Resistance

The four hour chart has been showing lower highs for the past week or so however the range is tightening up which could lead to a possible breakout. With an intraday high of $11,700 and a low of $11,000 BTC remains range bound for now trading at 00.

bitcoin

BTC price 1 hour chart. Tradingview.com

Trader and analyst Josh Rager has been eyeing the charts for the next move and is leaning towards a bearish one following the close of the weekly candle.

“Bitcoin closed below the resistance while at the same time tapped the tippy top of the support near $9,614. With lower-highs on the 4 hr chart, I’d look to lean bearish as we start the week. But you know that you’d love to buy more BTC and crypto under $10k”

On the upside, any move below five figures may well trigger another ‘buy Bitcoin’ frenzy as we witnessed last week when BTC fell to $9,600 briefly.

Full-time trader and self-styled financial revolution prepper ‘Financial Survivalism’ has also hinted at a move to the downside and expects Bitcoin price to drop back into four figures this week.

“I’m expecting $BTC to return to 4 figures within the next 48 hours. Main reason is the high volume shooting star from last week.
Confirmation comes from the charts below:
1st weekly Stoch sell signal since Dec 17
Overbought W ADX
Bearish TK Cross on D cloud
4h Bear channel”

The sentiment appears to be spreading across CT this Monday morning as others echo the possible end of the rally.

“In the near term, I think upside on $BTC is limited. Likely the top is in for the next 3-4 months. Better to build some support first before the 6 fig moon mission.”

Altcoins In The Green

Not all is bearish during Asian trading this morning. A number of the altcoins are actually posting pretty good gains over the past 24 hours. Ethereum has made almost 6% taking it back over $300 again, and Tron is on a flyer surging 9% to retake a top ten place.

Monero is up a similar amount as XMR reaches $105 and Crypto.com Chain is in double digits this morning with an 11% pump. Total market capitalization has added $8 billion so maybe the altcoins could be starting to finally decouple from their commander at the top.

Will Bitcoin price drop back to four figures this week? Will there be favorable situations to buy more Bitcoin?Add your thoughts below.


Images via Shutterstock, Tradingview, Twitter: Josh Rager @Josh_Rager, Financial Survivalism@Sawcruhteez

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Čvn 29

Grayscale Bitcoin Trust Surges 300%, Eclipses Oil & Tech ETFs

While Bitcoin price itself has begun the inevitable correction, dropping almost 17% since its recent high, investment funds for the asset are still hot potatoes. Grayscale Bitcoin Trust (GBTC) is a prime example as institutional interest has surged more than the asset itself.


Despite Bitcoin Price Correction, GBTC Investors “Hungry”

Bitcoin appears to be still in correction mode. It did climb back up to reach $12,400 for a few hours yesterday but has since dropped back to support at around $11,500. The lowest point in the recent pullback was $10,300, a drop of 25% from its $13,800 high. Many are expecting a 30% plus decline which would send BTC back into the mid $9,000s or lower.

Regardless of what the crypto asset itself does, institutional investors are hungry for more. Grayscale’s Bitcoin Trust (GBTC) has been performing exceptionally well since February and has surged over 300% according to Forbes.

The report added that the over the counter bitcoin backed security is trading at around $14 per share, up from $3.84 five months ago. In the same period bitcoin itself has gained over 220%. The discrepancy can be attributed to the increased premiums that institutional investors are charged as they are prevented from directly holding the asset.

GBTC Has “Destroyed” Gold, Oil & Tech ETFs

According to the editor of Forbes Dividend Investor newsletter, John Dobosz, the GBTC has destroyed other investments such as gold, oil, the S&P 500 and various tech ETFs.

“The total gain since that time for the GBTC, which tracks bitcoin pretty accurately, is up 341%. What comes in second best? You would have been okay with oil, even though oil has eaten dust and other particles in the last few weeks. Oil is up 12.8%.”

He added that the S&P 500 is up 8.5%, gold is up 7.7%, the iShares MSCI Emerging Markets ETF is up 1.4%, the Invesco QQQ for tech companies is up a lowly 1.7%, and the US dollar is up just 1%.

The report continued to state that the reason for this monumental performance could be the fund is the only publicly quoted US-based bitcoin investment product, which holds more than 1.2% of the total supply of BTC.

Grayscale Has $2.7 Billion of “Crypto” AUM

Grayscale has invested in other crypto assets including Ethereum, Bitcoin Cash, Litecoin, Stellar, Ethereum Classic, XRP and Zcash with total assets under management of $2.7 billion.

The fund is currently at an all-time high which is likely to continue when bitcoin resumes its bullish momentum. At the time of writing, BTC was trading at 00 and heading lower as the weekend begins. Further accumulation is likely to occur if BTC drops below five figures and this will drive the next wave of the uptrend.

Will institutional investment boost Bitcoin price even further? Add your thoughts below. 


Images by Shutterstock, Grayscale Investments

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Čvn 27

Bitmex Sees $500 Million Bitcoin Short Liquidation in 24hrs

Bitcoin trading activity is breaking all-time records in terms of volume and open interest in Bitcoin futures. The latest trading activity has caused Bitcoin’s value to reach an 18-month high, forcing a huge amount of Bitmex short-sellers to abruptly liquidate their positions.


Bitcoin Futures Hits Record Highs 4 Days Running

CME saw a record volume of USD 1.6 billion and record open interest for Bitcoin contracts of USD 373 million, on June 26, 2019.

The value of BTC rose to almost USD 14,000, causing short traders to liquidate over half a billion dollars in a single day.

At the Chicago Mercantile Exchange (CME) Bitcoin futures trading activity has been growing spectacularly in recent months, with institutional traders showing increasing interest. On June 20, 2019, CME reported,

CME Bitcoin futures open interest reaches a record for a fourth consecutive day, with 5,827 contracts traded on June 20 (29,135 equivalent bitcoin; ~$280M notional) and a 25% increase from last Friday.

Cryptocurrency optimists take long positions, while traders who are bearish take short positions. According to Commodity Futures Trading Commission (CFTC) data, big money traders, such as hedge fund managers, have been taking bearish positions. The Wall Street Journal reports,

Hedge funds and other money managers held about 14% more bearish ‘short’ positions in CME bitcoin futures last week than they did bullish ‘long’ positions, according to a recent Commodity Futures Trading Commission report.

So, when on June 26, 2019, the cryptocurrency neared the USD 14,000 mark, traders who had taken short positions were forced to execute massive liquidations.

Small Investors Remain Bullish

Hedge managers and other large traders have been bearish on BTC since February 2019. However, a bearish position taken by a hedge fund manager does not necessarily mean a bet against the cryptocurrency, as The Wall Street Journal explains,

Such data don’t necessarily mean hedge funds are placing outright bets that bitcoin will drop. The short bets could also be part of hedging strategies: for instance, a fund with a portfolio of bitcoins might go short at CME as insurance against the value of bitcoin dropping.

Moreover, positive signals about BTC continue to abound. For example, small investors remain bullish. According to The Wall Street Journal report, traders with fewer than 25 BTC contracts hold long positions outnumbering short bets by four to one.

What do you think about the latest Bitmex liquidation figures? Let us know in the comment section below!


Images via  Twitter/@skew_markets, Bitcoincharts.com, 

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Čvn 15

Hong Kong Protests Could Boost Bitcoin as Wealthy Move Assets Offshore

Bitcoin could be boosted by the current political unrest Hong Kong as the upper and middle classes are reportedly starting to move their assets offshore.


Hong Kong Begins Moving Wealth Offshore

Fears over the hated extradition bill, whose introduction the Hong Kong government has only suspended but declined to withdraw, are causing the wealthy to start moving their capital from Hong Kong to offshore.

People in Hong Kong vehemently oppose a proposed bill, which would give authorities the power to deport those suspected of crimes to mainland China.

hong kong

In protest, Hongkongers have been staging massive street demonstrations for several days, with varying degrees of violence. These demonstrations have caused widespread alarm, particularly for both government and business.

On June 10, 2019, the US State Department warned that “the amendments could damage Hong Kong’s business environment and subject our citizens residing in or visiting Hong Kong to China’s capricious judicial system.”

Moreover, the city is already suffering from liquidity problems, fueled in part by the China-U.S. trade war. Many now fear that if the extradition bill passes, it will increase capital outflows, thus further reducing liquidity.

As a consequence, rich people are now focusing on how to move their wealth offshore. According to Reuters,

Some Hong Kong tycoons have started moving personal wealth offshore as concern deepens over a local government plan to allow extraditions of suspects to face trial in China for the first time, according to financial advisers, bankers and lawyers familiar with such transactions.

In addition, many middle-class Hongkongers are withdrawing their money from Chinese banks in protest.

For many, these events explain in part Bitcoin’s present trajectory towards the $9,000 USD price mark.

Hong Kong authorities are now backing down. However, they are not withdrawing the bill.
On June 14, 2019, Hong Kong Chief Executive Carrie Lam announced that she was suspending the extradition bill she was trying to push through the Hong Kong Legislative Council.

But the mere suspension of the bill does not satisfy protesters. Therefore, they will go ahead with another massive demonstration on Sunday, June 16.

Thus, Lam’s latest move will not remove uncertainty from the political and business environment for a long time because she has not set a date for the next step forward.

Earlier this week Bitcoinist reported that Hong Kong is already seeing an uptick in Bitcoin trading volume on LocalBitcoins platform.

hong kong

If the political unrest continues, it will likely further encourage the rich and the middle-class to protect their assets by moving it elsewhere from the former British colony.

Hong Kongers, therefore, may already be eyeing the world’s first apolitical and borderless store of wealth, i.e. Bitcoin, to prevent the government from tracking their private data and confiscating their wealth. In fact, China is no stranger to paying a premium for cryptocurrencies to not only trade and invest but also as a means to circumvent capital controls.

In October 2018, a Chinese court issued a ruling saying there is no prohibition on owning and transferring bitcoin in China.

Will some wealthy Hong Kongers choose Bitcoin to protect their wealth? Let us know in the comments below!


Images via Twitter/@xinwenxiaojie, Shutterstock

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