Hong Kong is being heavily featured in mainstream media. These months long protests started out as protesting against a proposed bill. It would have the effect of allowing Hong Kong people to be extradited to Mainland China for violating Chinese law.
In this article, we look at 2 major news items which has been grabbing the headlines.
- In Hong Kong, there is a huge spike in demand for Bitcoin and it is being traded at a premium; and
- Martial law will be imposed in Hong Kong and the Chinese army are ready to invade.
Be sure to also check out our video which includes some more insights from Charles Yang, Head Trader at Hong Kong’s OTC desk-Genesis Block.
We’ve also interviewed Charles before on the secrets of “Darkpools” and unreported trade volume.
In Hong Kong, there is a huge spike in demand for Bitcoin and it is being traded at a premium
To see if there was indeed any truth to this we travelled to Genesis Block- an Over the Counter cryptocurrency trading desk.
We spoke to Charles Yang, Genesis Block’s Head Trader. He confirms there is in fact NO spike in demand and NO panic buying in Hong Kong. He also does not think many of the protesters know about or trade in Bitcoin.
We also looked at the price of Bitcoin at Genesis Block’s Bitcoin ATM machines yesterday.
On 13th August 2019 (US time) i.e. the date of the news articles and our video, Bitcoin was trading at around US$10,895.83.
So there also isn’t a substantial premium as the news outlets suggest.
Charles actually gave some insight on where this information came from. According to his Bloomberg sources, the premium is based on the prices listed at some smaller local exchanges with lower trade volume.
According to Charles, at Genesis Block, they will skew their prices based on global and Chinese markets. This is because most of their clients are from China. So owing to the Chinese discount in the past few weeks, they are also trading at a discount.
We also spent the whole afternoon at Genesis Block and only saw 1 person buying Bitcoin from the ATM machines.
Conclusion: Is Hong Kong trading Bitcoin at a premium? And is there a huge spike in demand for Bitcoin? The answer is NO.
Peoples’ Liberation Army (PLA) aka the Chinese army, will invade Hong Kong.
We’ve seen some pretty interesting reports coming in from outside Hong Kong which has left us scratching our heads.
This tweet from Anthony Pompliano is still being quoted in the Forbes article on 14th August 2019.
Interestingly, someone commented asking him to provide the source for this information. He did not reply.
I am currently living in Hong Kong and can definitively tell you THERE IS NO MARTIAL LAW IN HONG KONG.
Some other media sources are also saying that the Chinese army are going to invade Hong Kong.
Hong Kong news reports do confirm there is a Chinese military parade near the Hong Kong border. However, it’s not really causing much of a stir in Hong Kong.
The Chinese army had also earlier this month published a promotional video showing anti-riot drills. Most of the posts I see on local social media are just treating these as scare tactics. Commentators are also suggesting it is too risky for the army to invade Hong Kong.
Make no mistake, there have been protests in Hong Kong over the past few months. They are usually in various districts in Hong Kong and at different times of day (mostly on weekends).
There have been some violent clashes between some protesters and the police. Also between some mobsters who attacked protesters and citizens going about their day.
Protests have been escalating because of how the Government and the Police have handled the incidents.
There is now a lot of mistrust of the Police. The Police are accused of siding with the mobsters and using excessive force on protesters.
But generally, people’s day to day lives are not severely affected.
Conclusion: is martial law being imposed in Hong Kong? And will the Chinese army invade Hong Kong? The answer is NO
We hope this article has been helpful in dispelling the misinformation out there and giving you the perspective from someone who actually lives in Hong Kong.
If there is anything that we’ve learnt from these reports is that people should always verify, and not simply trust what is being reported. Especially since sensation sells.
Feel free to leave us questions on our social media. We’d be happy to share more about what is really happening.