Hong Kong protests make Bitcoin very popular

The Bitcoin trading volume at LocalBitcoins in Hong Kong reached a historic high last week. Due to protests, cryptocurrency is seen as a confidential and independent asset.

According to LocalBitcoins statistics, Hong Kong’s bitcoin trading volume jumped to a record high in a week. Last week at LocalBitcoins in Hong Kong, deals were made to buy and sell bitcoins in the amount of $ 13 million Hong Kong dollars (HKD).

The reason for the growing demand for cryptocurrency lies in the ongoing protests and the unstable political situation in Hong Kong, where there are demonstrations against the growing influence of Beijing.

“Asset managers still consider bitcoin a risky asset, but for some it has become an obvious safe haven for their assets” wrote eToro senior analyst Mati Greenspan, adding that Hong Kong’s local market is too small for such a surge in demand at the price of bitcoin on a global level.

In June 2019, when protests just broke out, Bitcoin started trading on Hong Kong exchanges with a noticeable premium: for example, on the TideBit exchange they were given $ 160 more for it than the world average, which indicates a surplus in demand.

Currently, the premium on the Hong Kong stock exchanges is not so significant. On TideBit for 1 Bitcoin they give 65,550 Hong Kong dollars ($ 8360), while the average weighted price for CoinMarketCap fluctuates around $ 8278.

In September 2019, BitPay payment processing service was suspected of censoring Bitcoin payments in Hong Kong. The founder and editor-in-chief of the Free Hong Kong Press, Tom Grandi, tweeted that the organization has been forced to temporarily suspend cryptocurrency donations. The reason for this was that the BitPay processing service refuses to perform bitcoin transfers to the organization over the past three weeks.

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According to Grandi, the official reason is that Hong Kong banks use SWIFT, not IBAN. But he logically suggests that then this would be a constant problem when accepting bitcoin donations, while the organization has encountered it only now, although it has been accepting cryptocurrencies for several years.

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