According to Bloomberg, in Argentina, where the peso plunged because of the uncertainty of the election, bitcoin recently traded at $ 12,000 on Localbitcoins.com, the same bitcoin trading platform. The lowest price of Bitcoin in the South American country is also higher price threshold on multiple exchanges precoding international 10%.
In Hong Kong, bitcoin prices are about 4% higher than the world average. Hong Kong is also hot with a lot of people’s protests.
"Bitcoin become the property finally to take refuge in the scene devaluation dizzy and unstable politics . Only last week, the price of Bitcoin increase of about 50% compared to the peso Argentina, traded at the threshold value at the Local trading platform Bitcoin is not only like that here but also in Venezuela, Hong Kong and Turkey, countries and territories experience similar shocks, "Rayne Steinberg, CEO of pre-coding hedge funds. Arca, said.
The higher prices in these places seem to initially protect the argument that bitcoin is a means of protecting assets from the slumping monetary value. However, this week bitcoin generally dropped 8% to $ 10,890, raising the risk for investors where instability when they bought bitcoin, a valuable asset that "evaporates" easily.
Last month, bitcoin supporters indicated an inverse correlation between bitcoin and US stocks . As US stock prices fell, rising bitcoin prices led many to believe investors were rushing to bitcoin as a safe haven asset. This week, this argument is no longer valid as both bitcoin and US stocks plunged.
Bitcoin is still a volatile asset. Bitcoin prices have more than doubled this year after slipping 73% in 2018. For comparison, the Argentine peso is 32% lower than the US dollar this year. Bitcoin trader Alex Kruger said: "Argentines want to defend themselves against the depreciation of the peso against the US dollar. They also buy dollars."
