As Protests In Hong Kong Rage On, Is Bitcoin Really A Safe Alternative For Businesses?

Hong Kong has become the epicenter of a major political turmoil as personal lives are being nothing but invaded by the government without any permission of the citizens. There have been demonstrations going on for weeks. As the Special Administrative Region (SAR) is getting shaken down, businesses are reportedly turning the Hong Kong Dollar in favor of Bitcoin. But is that a safe bet amid the political turmoil?

Businesses Turn To Bitcoin in Hong Kong

Reports have it that businesses are turning down the Hong Kong Dollar in favor of Bitcoin as a means of taking a stand against the imperialistic government and its raid in the city. 

Indeed, looking at the HKD/USD chart, we can see that since July, the Hong Kong dollar has been decreasing in value against the USD.

HKD/USD. Source: TradingView

We’ve already seen that Bitcoin is performing well in times of political and economic uncertainty. As Cryptopotato reported earlier in August, Bitcoin surged $700 as the trade tension between China and the US was taken to a new level when President Trump imposed yet another 10% tariff on $300 billion worth of Chinese goods. 

However, given the seriousness of the situation and Bitcoin’s pseudonymous nature, the question is if whether using it is literally safe. 

Bitcoin’s Pseudonymous Nature 

Contrary to what most people believe, Bitcoin is not actually anonymous. At least not in the sense of providing complete anonymity. 

While it doesn’t require any KYC for users to transact via the network, you still get identificators. Namely, this is your Bitcoin address – the one that you send and receive bitcoins from. If at any point in time this address is somehow linked to you, all the transactions going in and out of it will also be linked to you. And since Bitcoin runs on its immutable ledger, all transactions are permanently added there and everyone can access them. 

The issue is when people start using exchanges in order to buy or to sell Bitcoin. All regulated exchanges require users to go through thorough KYC procedures where they have to provide essential personal information in order to use the platform. Hence, it’s entirely possible for someone to track down your identity, even if you’re using Bitcoin. 

Given the political tension in Hong Kong, one may wonder if it is actually safe for business owners to turn to Bitcoin.