Japan

Why You Should Invest In Japanese Cryptocurrencies

The bullish rise in value of the cryptocurrency economy in 2017 was recorded to have been majorly influenced by countries from Asia. China for example was the biggest player in the Bitcoin market as it controlled 80% of the global trade volume of the creation of Satoshi Nakamato, but that was before the Chinese government started cracking down on digital currencies as a whole. If you can recall, you will be familiar with the famous ban on ICOs by the country which also triggered the closing of the biggest cryptocurrency exchange companies in the country. This led to China forfeiting their number one position, thereby giving other countries within the Asia continent to shine. Countries like Singapore, Indonesia and South Korea have cryptocurrency economy that is worth watching out for currently, but Japan among these countries has emerged as the next force.

World Power Status

Japan is an emerging world super power. Its national currency (Japanese Yen) in the cryptocurrency market is currently the second most traded currency, trailing just after the US dollar which is number one. As at January 2019, the Japanese Yen accounted for 57% of Bitcoin, and US dollars accounted for 28.4%. It is thus clear that although the US dollar is the overall leader in cryptocurrencies, Japan has overtaken China as the global leader in Bitcoin market. In April 2017, the government recognized Bitcoin as a form of payment. It then gave approval to about ten cryptocurrency exchanges companies to operate. The country even has a themed girl group called ‘The Virtual Currency Girls’. The Virtual Currency Girls is an eight member group whose members are representatives of eight different cryptocurrencies. All these developments are not as a result of chances; rather they are as a result of the approach in which the Japanese government has adopted in their dealings with cryptocurrencies. It is the first and only country which an institutionalized legal system that is regulating the trading of cryptocurrency, hence it provides the safety needed for investors who have nurtured concerns on trustworthiness of exchange companies.
 

Embrace of Cryptocurrency by Government

In macroeconomic terms, the embrace of cryptocurrency makes sense. Japan has taken time to recover from its so-called ‘Lost Decade’ of economic stagnation. Its relatively low growth and high savings rate make cryptocurrency an attractive option. While a trailblazer in tech development, Japan and its authorities are notoriously conservative when it comes to financial innovation. The government’s forward-looking attitude to virtual currencies may in fact be a reaction to that. The use of blockchain has given Japan an opportunity to shake things up a little and push local banks into more aggressive development. At the same time, the state’s proactive approach to regulation is also a way to keep crypto trading under centralized control.
Since the legalization, Japan has enjoyed what seems to be an endless cryptocurrency boom, with massive yields in retail investor interest and over-the-counter (OTC) services. Trading is not just their strong points as their trading companies are some of the best in the world; the country has also been a destination for testing of blockchain innovations. It is a general saying that most crypto currency start-up companies have higher chances of surviving through their first year if they have their market in the Japanese cryptocurrency market. They’re not just making strides when it comes to trading. Japan is also becoming an important testing ground for blockchain innovation. For example, the Japanese government in a bid to demonstrate their support for blockchain and cryptocurrency gave a go ahead for the partnership of Hitachi and Tech Bureau to build a blockchain system that runs on NEM-based Mijin Blockchain platform.
Currently, the issuance of ICOs is currently banned in Japan. And due to the regulation of the exchange companies in the country, the numbers of crypto coins that are traded in the market are limited. However, some of the top cryptocurrency companies in Japan include Coincheck, Bitflyer, Ginco, BitPoint, Tech Bureau and a host of others. Experts say that the best is yet to come for cryptocurrency in Japan as there are a lot of cryptocurrency projects that are being generated. With such backing from the government and a willing customer base reach, one cannot deny the fact that investing in Japanese cryptocurrency market is a gold mine.

Top 5 Countries with the Highest Crypto Investors

The technology behind blockchain and cryptocurrency is built on a trustless platform. Hence it is a web transaction that cannot be traced, and we cannot know the exact amount of investment that individuals have. Most people believe the amount of crypto coins available today is a hoarse. They believe that cryptocurrency funds, exchange and mining firms play the role of whales in the industry, capitalizing on the trustless platform of the technology and using it to control small investors.
While there are whales in some cryptocurrency projects, it is not true that exchanges and mining firms play the role of whales in the market. And what better way to know than to check their user base data. Most of these exchange and mining firms have data like country and IP address of their customers. And from these data, one can conclude that through the collective investment in cryptocurrency by residents of different countries, they have placed these countries on the map. Even though cryptocurrency still have a long way to go in terms of global acceptance, one cannot deny that these investors are have contributed to the level that we are in today. I have taken my time to write about the top 5 of these countries.

The United States

The United States is home to a lot of cryptocurrency exchanges, mining firms, trading platforms and blockchain oriented companies. It is also the number one country on the global scale of the installation of Bitcoin ATMs with over two thousand (2,000) Bitcoin ATMs installed as at December 2018. All these activities and endeavors could only mean one thing, the American population accepts cryptocurrency. Well, it depends on what we mean by population though, because only 8% of the American population is said to be holders of Bitcoin alone. This of course is a big deal, considering the population of Uncle Sam’s country.

China

If there is anything on cryptocurrency that China has been in the news for, it is the constant crackdown on cryptocurrency activities. But that is just the story of the Government of the people of China as the country is still one of the leading countries in terms of digital currency trading. It some of the world’s leading exchanges and the citizens in this country are known for their mining activities. It is generally believed that most Chinese miners tend to move their residential houses and offices closer to power plants because it is cheaper in terms of cost to mine cryptos. Also, recent trends reveals that Chinese government are working on various blockchain technologies, one cannot tell if the crackdown will continue, but the investors will definitely reduce if it does.

Romania

Romania is home to numerous programmers and developers who are mostly freelancers. It also plays host to many firms and businesses that are big players in the IT industry. It therefore won’t come as a surprise to anyone that it has a lot of investors. About 12% of the residents of Romania are said to be holders of at least one cryptocurrency, and guess which cryptocurrency is the most important… Bitcoin.

South Korea

South Korea is the second Asia country on this list. Unlike China, the government of South Korea is not hostile towards cryptocurrency. Most people say that the crackdown of China on cryptocurrency caused the drift of investors from the country to South Korea. South Korea is a country with eyes for the technological company, hence it plays host to lots of exchanges and cryptocurrency businesses. Most of the exchanges in South Korea are restricted to the country alone, this means that there are enough investors. As always, Bitcoin is number one on the list of the most held cryptocurrency in this coutry.

Japan

There is a large number of acceptances of cryptocurrency in Japan. It is one of the few countries that has recognize cryptocurrencies as an institutionalized means of payment. This has in some ways increased the number of investors in this country as there is little or no restrictions that stops them from engaging in cryptocurrency market transaction within and outside the country. The exchanges in Japan are known for the swiftness in which they process transactions.