HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Hong Kong Wealthy Move Gold Offshore: Why Bitcoin Is Better

Bitcoin 2020/08/07 22:00 by Tony Spilotro

Precious metal dealers in the political and protest torn Hong Kong claim that the wealthy are moving gold offshore following a new security law passed by Beijing in July.

Investors fearing that their wealth is at risk and must be stored out of arm’s reach is a sign that the wealthy are ready for the digital age of gold, powered by a budding new asset called Bitcoin.

Hong Kong FUD Prompts Wealthy To Move Gold Offshore Over Safety Concerns

New laws in Hong Kong imposed by China have prompted the wealthy to move gold out of the country’s financial hub and to safer havens like Switzerland, Singapore, and more.

The trend first began last year, according to local metals dealers, as protests began sweeping the nation and political tensions boiled over.

Related Reading | Silver Fractal: Are Crypto Altcoins On the Cusp of an Explosive Surge?

The factors promote investors moving capital into safe haven assets like gold, silver, and recently, Bitcoin and cryptocurrencies. But holding precious metals carries risks not associated with crypto assets, such as physical theft.

“Investors are moving gold from Hong Kong to Singapore because they don’t like the risk and uncertainty,” metals analyst Ronan Manly told FT. “This could, in the mind of gold holders, snowball into concerns about safety of bullion and certainty of property rights.”

For the wealthy concerned with safety and property rights, but want a similar asset to gold, Bitcoin is the answer.

bitcoin gold correlation

Bitcoin and Gold Climbing Together In 2020 | Source: TradingView

How Bitcoin Is The Best Insurance Policy For Political and Economic Chaos

Bitcoin was designed by Satoshi Nakamoto as a peer-to-peer digital form of cash, but also to include several similarities with gold. Satoshi sought to make the cryptocurrency part commodity or “collectible” and coded a hard cap into the asset’s supply.

Only 21 million BTC will ever exist. Even less are circulating today, and millions may be lost or locked away for good. There are risks involved in custody of crypto assets include total loss and the responsibility of having to be your own bank. However, it also means that no third-party can ever access the assets without directly having possession or knowledge of a private key.

Related Reading | Why Bitcoin is the Best Insurance Policy For Long-Term Wealth Preservation

Digital ownership through cryptography is a safe and secure way to protect property rights. Bitcoin also exists only digitally, lacking a physical form that is put at risk by earthly actors, like thieves, family members, or the government’s strong arm.

It is for these very reasons, that Bitcoin is the ideal solution for the situation taking place in Hong Kong currently, and highlights how the future environment may be ideal for cryptocurrencies. Inflation of the dollar, contactless payment preference, and several other sudden changes in the mainstream market could see a surge in usage and adoption in Bitcoin.

Gold shares none of these attributes but has been used for centuries for the similarities it does share with crypto. In today’s digital age, economic uncertainty, and political unpredictably, Bitcoin remains the best insurance policy for the future.

0 Like(s)



You should also read...

Bitcoin 16/03/20 18:35 by Edwin Kinoti
Yes, Bitcoin Is still A Safe Haven Asset Despite Mammoth Price Drop
Bitcoin (BTC) is still a safe haven asset despite its massive price drop over the past week. At least, according to the digital assets research firm, Bloqport. Bitcoin’s inability to retain value a...
Read More
Altcoins 20/03/20 16:11 by Edwin Kinoti
Crypto Market Cap Nears $200 Billion As Bitcoin, Ethereum, and XRP Ignite Abrupt Rally
Cryptocurrencies total market capitalization is closing in on the $200 billion level following a massive sector-wide price rally. A majority of the digital assets recorded double-digit price growth i...
Read More
Altcoins 19/05/20 19:30 by Tony Spilotro
Are Altcoins Silver To Bitcoin As Gold? Unusual Correlation Discovered
Bitcoin has long been referred to as the digital counterpart to the scarce physical asset and precious metal, gold. But could altcoins be the digital silver to Bitcoin as digital gold? According to an...
Read More
Crypto 18/01/21 07:48 by Thomas Delahunty
5 Projects Bringing Institutional-Grade Products to Crypto
The anticipated flow of institutional capital into the crypto market has been a popular narrative over the last few years, but often with limited traction. Now, in the aftermath of the 2020 macro back...
Read More
Altcoins 06/03/21 02:00 by Tony Spilotro
Economist: Ethereum and Bitcoin Look “Bullish” After Withstanding “Macro Beating”
Bitcoin and Ethereum are down from their recent 2021 highs, but compared to their traditional market counterparts, have shown more resilience during the recent “royal macro beating.” Here&...
Read More