Capital flight out of Asia is one of major reasons for Bitcoin (BTC) hitting new 2020 highs in August, a major Bitcoin advocate believes.
Max Keiser, a famous American broadcaster and known Bitcoin bull, is confident that rising tensions in Asia are one of factors for Bitcoin’s rally up to $12,000.
“You can’t take it with you, unless it’s Bitcoin”
In an Aug. 10 tweet, Keiser argued that Bitcoin is a solid method to move big amounts of money abroad while crossing borders. According to Keiser, a number of people in Asia are using Bitcoin to move their money out of the continent as geopolitical tensions risk affecting markets. “Capital flight out of Asia taking the Bitcoin express,” Keiser wrote.
Comparing Bitcoin to gold — one of the world’s most popular safe-haven assets, Keiser argued that Bitcoin is one of the few ways to move a fortune abroad. Keiser said, “You can’t take it with you, unless it’s Bitcoin – then you can take IT ALL with you. (Something near impossible with gold).” The news comes amid reports of Chinese citizens illegally crossing into the United States with $28,000 worth of gold bars.
#Bitcoin up as tensions rise in Asia
Capital flight out of Asia taking the #Bitcoin express
You can’t take it with you, unless it’s Bitcoin – then you can take IT ALL with you
(Something near impossible with Gold)
— Max Keiser (@maxkeiser) August 10, 2020
Security law triggers Hong Kong to dump gold for “something else”
While Keiser did not clarify exactly which situation he was referring to, the Financial Times reported on Aug. 7 that Hong Kong’s wealthy are moving large amounts of their gold out of the financial hub after Beijing imposed a new national security law on the city in July 2020.
Joshua Rotbart, head of J Rotbart & Co, a Hong Kong-based gold dealer and storage provider, reportedly said that after the national security law was passed, there could be “immediate response from Hong Kong residents” asking to store gold “somewhere else.”
Earlier in July, Cointelegraph reported that major global banks like Credit Suisse and HSBC were limiting services to Hong Kong clients amid the ongoing protests over China-backed national security law.
Last week, another Bitcoin bull, Anthony “Pomp” Pompliano, predicted that Bitcoin will eventually become a bigger market than gold thanks to its superior digital nature.