Popularization and future potential of crypto assets (virtual currencies) in Japan

Many people have already heard the name of crypto assets (virtual currency) in some form. Bitcoin, which already has a market capitalization of approximately 600 trillion yen, and Etherius, which has a market capitalization of approximately 300 trillion yen, can be cited as representative examples. Let’s take a look at the future of such crypto assets in Japan.

Current state of crypto assets in the world

First, the market capitalization of all crypto assets in the world is approximately $262.4 billion (as of May 2019). Also, the daily trading volume of crypto assets is about $93.6 billion. Crypto assets are said to be “decentralized” in the sense that there is no company operating them and strong security is maintained through the adoption of blockchain technology. Laws are gradually being developed around the world, with El Salvador in Central America and the Central African Republic showing enthusiasm, such as the designation of Bitcoin as legal tender. As for the investment objective, several well-known investors own a large amount of money, and Tesla CEO Elon Musk and Twitter founder and current BLOCK CEO Jack Dorsey held a chat session. We are leading the industry in doing so.

Crypto assets and future in Japan

on major cryptocurrency exchanges in Japan live betting The total trading volume is approximately 1,273.1 billion yen (as of May 2019) and the number of user accounts is approximately 2.87 million. Considering that there are Japanese using overseas exchanges, we can imagine that the actual number is much higher than this.

The size of the crypto-asset market grew from about $5.6 billion at the beginning of 2015 to about $565.1 billion at the end of 2017. It has expanded more than 100 times in about two years, but among the Japanese, there are News of bitcoins leaked from an exchange called Mt. Gox in 2014, and Coincheck received a trade enhancement order in 2018. Some people may be under the impression that cryptocurrency assets are high risk after the news broke. However, while some countries have imposed strict regulations in the context of such incidents, Japan is heading in the direction of “creating a healthy market through the development of laws.”

For example, in 2017, the Fund Settlement Law (Payment Settlement Law) was enacted, which requires the introduction of a registration system, provision of adequate information to users, separate management of user assets and the implementation of verification at the time of transaction such regulations were established. In May 2020, the Fund Liquidation Law was modified and the FIEA Establishment of rules on asset derivative operations (leverage of 2 times or less) was applied”.

Bitcoin itself is increasing in value while repeating great ups and downs. And with the next halving in 2024 (halving the amount of Bitcoin in circulation to prevent its value from depreciating), an even bigger increase is expected.

Crypto assets whose presence is increasing due to the increase in usage scenes

In terms of investment, the practical use of bitcoin futures trading is being promoted, and in terms of daily use, bitcoin payment is being promoted. It has started to be adopted in e-commerce, where you shop online, in the atmosphere of online casinos abroad, and in online casinos where you can enjoy the games. The convenience of being able to enjoy shopping and entertainment using bitcoin and running Ethereum without losing cash should expand user queues.

Increase value with confidence

The Japanese tend to be defensive as a national character. Just as local governments worked on character development one after another after confirming successful examples of yuru-chara, it is believed that the number of enterprises introducing yuru-chara and the number of people using it will naturally increase as more establish legislation. and the number of practical examples increases. Although there are still many issues to be decided, I would like to enjoy watching the process of how these new technologies permeate our lives and become more convenient.


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