As people in Hong Kong protest against the government for the controversial extradition bill, the value of the Hong Kong dollar is constantly devaluing. Similar circumstances are prevailing in Argentina as after the election shock the value Peso stumbled by 30%. In both, the countries Bitcoin is trading at a premium of more than 4%. On Monday, Bitcoin was trading at $12,000 on a local cryptocurrency exchange in Argentina that is 10% higher than the international market.
In countries like Hong Kong and Argentina, where there is a constant threat of collapsing of fiat currency because of political scenarios, investors turning to the leading cryptocurrency for keeping their assets safe. Even though Bitcoin is trading at a premium in these countries, the value of the cryptocurrency has gone down by 8% this week, which puts investors at risk.
According to a Bloomberg report, the value of Argentina Peso has gone down by 32% against the US dollar in 2019. Many experts from the crypto industry pointed to political turmoil worldwide to explain the rise in the price of Bitcoin. As the situation in both countries does not seem to resolve any time soon, bitcoin advocates are suggesting to invest in the cryptocurrency.
Meanwhile, this might be a good scenario for investors in the politically troubled countries to turn to Bitcoin, but an economist and trader from Argentina, Alex Kruger pointed out that the primary goal of people in those countries should be to save the native currency against the dollar.