Japan is taking the lead as a major fund provider for Cryptocurrencies. Digital currencies are fast becoming a global trend and many investors are seeing huge increases in the values of their holdings especially since 2016.
The Japanese yen accounted for 56.2% of Bitcoin transactions as of January 15th, 2018. Following suit was the US Dollar that accounted for 28.4% of Bitcoin transactions and the remaining 15.4% was shared between other currencies. As of January 2017, the Chinese Yuan was first placed on the list of currencies used in purchasing Bitcoins, but the Yuan was bumped off the list as a result of Chinese government ban on investing in Cryptocurrencies.
Midori Kanemitsu, Chief Financial Officer for Japan’s leading Cryptocurrency transaction operator, bitFlyer Inc. recently said that Japan owes its lead to the approving legal system that makes it possible for investors to build trustworthy investments as well as the fact that Japan is to date one of the safest investment heavens.
Kanemitsu also recognized her country’s lead as being the first country to put in place a legal body solely to oversee the functioning of Cryptocurrencies. She added that this has had a significant effect in taking away customers’ doubts regarding the security of their investments.
“Even though New York has also established the ‘BitLicense’ to regulate Cryptocurrency activities, the limitations are however harsh and not in proper operation in comparison to that of Japan” said Kanemitsu.
The Financial Services Agency reports that there were 15 firms operating Cryptocurrency transactions as of December 26, 2017.
According to Kanemitsu, Yuzo Kano, bitFlyer co-founder and CEO has made endless efforts for Cryptocurrency investment to be legalized. But the bankruptcy of MT. Gox’s in 2014 created the path for the firm to apply optional restriction. In view of the fact that the limitations were not efficient, Kano pushed legal bodies to legalize Cryptocurrency investment.
Japan is emerging as a giant in the growth of Cryptocurrency trading thanks to its vast knowledge on how to make profits especially in forex trading.
Kanemitsu also acknowledged that Japanese investors are also taking the lead in foreign exchange.
Recently, Cryptocurrencies have become the key means for transacting especially online with Bitcoin alone accounting for $230 billion worth of transactions as of January 15. This value surpasses Toyota Motor Corporation’s market capitalization of $225.7 billion. In total, Cryptocurrencies account for $701 billion in market capitalization.
Although there is a bright future ahead for Bitcoin thanks to its consistency, people will however lose interest in it because it is expensive and cumbersome.
But one solution to all of Bitcoin’s problems is investing in technology that will make it less expensive and more user friendly. Thankfully, Bitcoin has its engineers working on exactly that.
Plans are in the pipeline for companies such as Amazon .com and Airbnb.com to start accepting Cryptocurrencies.