Unrest in Hong Kong that can increase the price of Bitcoin. This is at least because the representatives of the upper and middle class begin to move their assets abroad. And this helps them just a cryptocurrency. The Hong Kong authorities were going to take the unpopular bill, which aroused the indignation of the public. It should be noted that currently the procedure is only suspended, and to abandon the bill completely power not going.
Residents oppose law that the authorities will deport the alleged crimes of individuals in China. For a few days on the streets of the city held mass street demonstrations. The situation arouses concern in the government and business circles.
10 June 2019, the US state Department have warned that “the amendment could harm the business environment of Hong Kong and endanger our citizens living in Hong Kong”. Moreover, the city experiences difficulties with liquidity, which is partially fueled by Chinese-American trade war.
Many now fear that the adoption of the extradition bill will lead to higher capital outflows and further declines in liquidity. Accordingly, wealthy people are now looking for ways to move their capital and resources abroad. According to Reuters, people familiar with the situation, financial advisers, bankers and lawyers argue that some Hong Kong tycoons have already begun to move personal wealth offshore. However, many members of the middle class are pulling money out of Chinese banks in protest.
Even if you don’t listen to the people, maybe you should listen to the money.
Middle-class taking money out of Chinese banks in anger at #ExtraditionBill … could this be the start of a new spontaneous campaign?https://t.co/g21xAKVArz
— Yuen Chan (@xinwenxiaojie) June 12, 2019
June 14, 2019, the chief Executive of Hong Kong Carrie Lam announced that it was suspending the extradition bill which she is trying to promote through the Legislative Council of Hong Kong. However, the suspension of the bill does not satisfy the protesters.
As the protests in Hong Kong affect the price of Bitcoin?
Many of the crypto community is credited with the rapid jump in Bitcoin this unrest. Earlier this week, Bitcoinist reported that in Hong Kong began to grow the volume of transactions with bitcoins on LocalBitcoins platform.
If the political unrest continues, it could push even more wealthy residents to protect their assets. People will start to massively withdraw savings from a former British colony. It is logical that Hong Kong residents get accustomed to the world’s first apolitical and limitless storehouse of value in the face of Bitcoin. Cryptocurrencies can help them avoid government surveillance and confiscation.
In fact, China is no stranger to great momentum in the cryptocurrency. And it’s not just about investing and trading, but use the crypt as a means to bypass capital controls. In October 2018, a Chinese court has ordered the lifting of the ban on the possession and transfer of BTC in China.
What do you think, will the most wealthy strata of Hong Kong society to display their wealth with cryptocurrencies? It can take the Hong Kong authorities to prevent the flight of capital? To talk about in our cryptodata of hontarov.
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