Hong Kong Wealthy Move Gold Offshore: Why Bitcoin Is Better
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.
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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 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.
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.