{"id":182185,"date":"2021-08-04T10:30:33","date_gmt":"2021-08-04T02:30:33","guid":{"rendered":"https:\/\/thehoneycombers.com\/hong-kong\/?p=182185"},"modified":"2021-08-04T14:45:24","modified_gmt":"2021-08-04T06:45:24","slug":"cryptocurrency-basics-hong-kong","status":"publish","type":"post","link":"https:\/\/thehoneycombers.com\/hong-kong\/cryptocurrency-basics-hong-kong\/","title":{"rendered":"What on earth are Bitcoin and Dogecoin? Here&#8217;s your guide to cryptocurrency in Hong Kong"},"content":{"rendered":"<p>Cryptocurrency is a term that\u2019s been floating around a lot nowadays, but what exactly is it? Whether you\u2019re a fresh grad curious about the world of finance (well done for going beyond paying the bills, honestly), or a Hongkonger concerned about the <a href=\"https:\/\/www.scmp.com\/news\/hong-kong\/law-and-crime\/article\/3143394\/cryptocurrency-crime-hong-kong-hits-record-levels-one\" target=\"_blank\" rel=\"noopener nofollow\">recent rise of crypto-related crimes<\/a>, we\u2019ve done the hard work for you here so that you can whiz through the basics of cryptocurrency and understand why it matters to you. Don\u2019t forget to check out <a href=\"https:\/\/thehoneycombers.com\/hong-kong\/virtual-banks-hong-kong\/\" target=\"_blank\" rel=\"noopener\">our guide to virtual banks<\/a> and <a href=\"https:\/\/thehoneycombers.com\/hong-kong\/living-in-hong-kong-life-hacks-tips\/\" target=\"_blank\" rel=\"noopener\">our personal hacks for living in the 852<\/a> to make the best out of your time (and money) in Hong Kong!<\/p>\n<h2>Cryptocurrency 101: A quick guide to digital assets in Hong Kong<\/h2>\n<h3>What is cryptocurrency?<\/h3>\n<figure id=\"attachment_182187\" aria-describedby=\"caption-attachment-182187\" style=\"width: 900px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-medium wp-image-182187 lazyload\" data-src=\"https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-litecoin-ethereum-900x643.jpeg\" alt=\"litecoin ethereum cryptocurrency black laptop keyboard\" width=\"900\" height=\"643\" data-srcset=\"https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-litecoin-ethereum-900x643.jpeg 900w, https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-litecoin-ethereum-768x549.jpeg 768w, https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-litecoin-ethereum.jpeg 1400w\" data-sizes=\"(max-width: 900px) 100vw, 900px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 900px; --smush-placeholder-aspect-ratio: 900\/643;\" \/><figcaption id=\"caption-attachment-182187\" class=\"wp-caption-text\">Litecoin and Ethereum are two well known cryptocurrencies. (Photography: Jievani Weerasinghe)<\/figcaption><\/figure>\n<p>Broken down, the term cryptocurrency means coded currency \u2013 a digital asset that is secured by strong cryptography. It doesn\u2019t exist in physical forms, such as paper money; instead, it exists in a virtual form and its value comes from speculative interest. Sounds too complicated already? Think of cryptocurrency as the digital version of arcade tokens or casino chips \u2013 it\u2019s something you can have in exchange for real-world currencies.<\/p>\n<h3>Why do people use cryptocurrency in Hong Kong?<\/h3>\n<p>Since cryptocurrency isn\u2019t issued by a central authority like the government (i.e. it\u2019s decentralised), it\u2019s very volatile in value, and it isn\u2019t strictly regulated either (<a href=\"https:\/\/www.scmp.com\/business\/banking-finance\/article\/3134729\/hong-kong-seeks-power-jail-unlicensed-crypto-exchange\" target=\"_blank\" rel=\"noopener nofollow\">not until very recently, anyway<\/a>). This isn\u2019t just the case in Hong Kong, but around the world \u2013 after all, the digital world knows almost no geographical boundaries. And with little regulation, you can imagine the risk \u2013 and potential profit \u2013 as its valuation is driven by speculative investment. The more people who want cryptocurrency, the more cryptocurrency is worth.<\/p>\n<p>Another appeal of cryptocurrency lies in the fact that it\u2019s, well, encrypted. Transactions of cryptocurrency occur on a peer-to-peer basis via a distributed ledger, which is a database that contains a series of blockchain \u2013 block after block of coded and duplicated systematic information \u2013 designed to protect records of ownership and verify coin transfers. Not only does blockchain remove intermediaries (such as banks and notaries public), thus eliminating transaction fees, but it also preserves anonymity for those purchasing products or services with cryptocurrency. Sounds good, but do you see how the latter can be potentially problematic? We\u2019ll talk about that in a sec.<\/p>\n<h3>What are the most common forms of cryptocurrency in Hong Kong?<\/h3>\n<figure id=\"attachment_182188\" aria-describedby=\"caption-attachment-182188\" style=\"width: 900px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-medium wp-image-182188 lazyload\" data-src=\"https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-bitcoin-900x643.jpeg\" alt=\"pile of bitcoin\" width=\"900\" height=\"643\" data-srcset=\"https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-bitcoin-900x643.jpeg 900w, https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-bitcoin-768x549.jpeg 768w, https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-bitcoin.jpeg 1400w\" data-sizes=\"(max-width: 900px) 100vw, 900px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 900px; --smush-placeholder-aspect-ratio: 900\/643;\" \/><figcaption id=\"caption-attachment-182188\" class=\"wp-caption-text\">Bitcoin needs little introduction in the world of cryptocurrency. (Photography: Executium)<\/figcaption><\/figure>\n<p>While cryptocurrency is virtual, and therefore knows no bounds, Hongkongers are generally more familiar with Bitcoin, Ethereum, and Dogecoin, among around 10,000 other cryptocurrencies around the world (yep, there are that many).<\/p>\n<p>First released in 2009, Bitcoin (BTC) is the first decentralised cryptocurrency. One Bitcoin was only worth a fraction of a cent (USD 0.003) back in March 2010, yet now (as of 4 August 2021), it\u2019s valued at over USD 37,800 (almost HKD 300,000).<\/p>\n<p>Moving on to Ethereum (ETH). This is the second-largest cryptocurrency by market capitalisation (just after Bitcoin) and is one of the most actively used blockchain in the world. Initially released in 2015, one Ether is currently worth around USD 2,400 (HKD 19,000). Mind, these values are likely to wobble a lot over the next many months, but they\u2019re still pretty big numbers, aren\u2019t they?<\/p>\n<p>And finally we have Dogecoin (DOGE). Compared to the previous two cryptocurrencies, Dogecoin is much friendlier \u2013 just like the adorable meme itself. This payment system was created as a joke to begin with in late 2013. Since then, one Dogecoin has yet to hit USD 1, but it may well be worth investing \u2013 at least for the meme! (Don\u2019t count on us though!)<\/p>\n<h3>The dark side of cryptocurrency<\/h3>\n<figure id=\"attachment_182186\" aria-describedby=\"caption-attachment-182186\" style=\"width: 900px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-medium wp-image-182186 lazyload\" data-src=\"https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-deep-dark-web-legal-900x643.jpeg\" alt=\"matrix coding cryptocurrency\" width=\"900\" height=\"643\" data-srcset=\"https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-deep-dark-web-legal-900x643.jpeg 900w, https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-deep-dark-web-legal-768x549.jpeg 768w, https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-deep-dark-web-legal.jpeg 1400w\" data-sizes=\"(max-width: 900px) 100vw, 900px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 900px; --smush-placeholder-aspect-ratio: 900\/643;\" \/><figcaption id=\"caption-attachment-182186\" class=\"wp-caption-text\">Cryptocurrency can be used for malicious purposes too. (Photography: Markus Spiske)<\/figcaption><\/figure>\n<p>While cryptocurrency is widely used and has many advantages, the anonymous nature of crypto transactions is a double-edged sword that can threaten cybersecurity and even encourage criminal activity. This is particularly rampant in the dark web marketplace, where some users employ cryptocurrencies to buy and sell weapons illegally, launder money, trade drugs, and even hire hitmen. That said, cryptocurrency is generally legal and is worth looking into. Just make sure you <a href=\"https:\/\/thehoneycombers.com\/hong-kong\/sign-up\/\" target=\"_blank\" rel=\"noopener\">stay tuned to us<\/a> as we speak to experts about tips for investing in cryptocurrency in Hong Kong!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cryptocurrency is a term that\u2019s been floating around a lot nowadays, but what exactly is it? Whether you\u2019re a fresh grad curious about the world of finance (well done for going beyond paying the bills, honestly), or a Hongkonger concerned about the recent rise of crypto-related crimes, we\u2019ve done the hard work for you here [&hellip;]<\/p>\n","protected":false},"author":107518,"featured_media":182189,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false},"categories":[9,18026],"tags":[32645,15056,13029],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.7 (Yoast SEO v23.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cryptocurrency 101: Guide to digital assets in Hong Kong | Honeycombers<\/title>\n<meta name=\"description\" content=\"What on earth are Bitcoin and Dogecoin? Here\u2019s a crash course to help you understand cryptocurrency in Hong Kong.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thehoneycombers.com\/hong-kong\/cryptocurrency-basics-hong-kong\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What on earth are Bitcoin and Dogecoin? Here&#039;s your guide to cryptocurrency in Hong Kong\" \/>\n<meta property=\"og:description\" content=\"Cryptocurrency is a term that\u2019s been floating around a lot nowadays, but what exactly is it? Whether you\u2019re a fresh grad curious about the world of\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thehoneycombers.com\/hong-kong\/cryptocurrency-basics-hong-kong\/\" \/>\n<meta property=\"og:site_name\" content=\"Honeycombers Hong Kong\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/honeycombershongkong\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-04T02:30:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-08-04T06:45:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.thehoneycombers.com\/wp-content\/uploads\/sites\/6\/2021\/08\/cryptocurrency-hong-kong-dogecoin-MAIN-IMAGE.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1400\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Elaine Wong\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@honeycombershk\" \/>\n<meta name=\"twitter:site\" content=\"@honeycombershk\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Elaine Wong\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thehoneycombers.com\/hong-kong\/cryptocurrency-basics-hong-kong\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thehoneycombers.com\/hong-kong\/cryptocurrency-basics-hong-kong\/\"},\"author\":{\"name\":\"Elaine Wong\",\"@id\":\"https:\/\/thehoneycombers.com\/hong-kong\/#\/schema\/person\/83f92166250cd2f903c8bfcf5068bc91\"},\"headline\":\"What on earth are Bitcoin and Dogecoin? 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