Capital flight from Asia is one of the main reasons why Bitcoin (BTC) reached new highs in August 2020, according to a leading Bitcoin advocate.
Max Keiser, a famous American broadcaster and well-known Bitcoin optimist, is confident that the rising tensions in Asia will be one of the factors in Bitcoin’s reaching the $12,000 mark.
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„You can’t take it with you, unless it’s Bitcoin“
In an August 10 tweet, Keiser argued that Bitcoin is a sound method for moving large amounts of money overseas while crossing borders. According to Keiser, several people in Asia are using Bitcoin to move their money out of the continent, as geopolitical tensions risk affecting the markets. „Capital flight from Asia is taking the Bitcoin Express,“ Keiser wrote.
Comparing Bitcoin to gold, one of the world’s most popular refuge assets, Keiser argued that Bitcoin is one of the few ways to move a fortune overseas. Keiser said, „You can’t take it with you, unless it’s Bitcoin … in which case, you can take it all. (Something almost impossible with gold). The news comes amid reports of Chinese citizens crossing illegally into the United States with gold bars valued at $28,000.
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The security law makes Hong Kong get rid of gold for „something else“
Although Keiser did not clarify exactly what situation he was referring to, the Financial Times reported on August 7 that Hong Kong’s rich are taking large amounts of their gold out of the financial centre after Beijing imposed a new national security law on the city in July 2020.
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Joshua Rotbart, head of J Rotbart & Co, a Hong Kong-based gold trader and storage provider, said that after the national security law was passed, there could be „an immediate response from Hong Kong residents“ asking to store the gold „elsewhere“.
In early July, Cointelegraph reported that major global banks such as Credit Suisse and HSBC were limiting their services to Hong Kong customers amid continuing protests over the Chinese-backed national security law.
Last week, another Bitcoin optimist, Anthony „Pomp“ Pompliano, predicted that Bitcoin will eventually become a bigger Bitcoin Era market than gold because of its superior digital nature.