We all know that recently on April 1 2017, Japan officially declared and adopted Bitcoin as official mode of payments. Not only legalizing it in exchange of goods/services, it also introduced the tax policies related to bitcoin and exempted buying/selling of bitcoins from Consumption Tax( click here to read full article and all tax policies)
This bold decision of Japan has shaken the bitcoin market which has caused bitcoin prices to surge. Before the announcement, bitcoin prices were dipping, but this move of Japan has not only stopped bitcoin prices from falling but also helped it in recovering it.
Before the announcement bitcoin was trading around INR 68000, but post announcement it gained a huge amount and prices as on 7 April 2017 is around INR 80000 on Indian Bitcoin Exchanges. Not only in India, but bitcoin prices are moving upwards steadily on all global bitcoin exchanges as well.
Well, maybe some of you might be enjoying bitcoin prices moving upwards and not interested in the reasons behind it but still one needs to know as why the prices are increasing day by day with respect to Japan’s decision of adopting Bitcoins as official mode of Payment.
Firstly,to begin with, we all know that Japan is the third largest economy in the world (well if you didn’t, relax you learned another new thing today by KryptoMoney.com) and this decision has to obviously affect other economies and in turn Bitcoin Enthusiasts from other economies.
Secondly, Japanese Bitcoin trading volumes has also a significant share in total bitcoin trading volume , and when Japanese government introduces such kind of favorable policies , it boosts traders and investors confidence in Bitcoin. As a result high trading volume in Bitcoin is likely to happen which in turn will increase the prices of Bitcoin globally. Coincheck, a bitcoin wallet and exchange provider based in Tokyo recently announced in a press conference that volume in Bitcoins has surpassed ¥ 541.1 billion , which is 20 times higher as compared to that for the same period last year.
Thirdly, as Japan has declared Bitcoin as a legal tender, it is possible that Japanese MNC’s located outside Japan may start remunerating in Bitcoins to Japan and it’s staff and as a result, trading of Bitcoins in other parts of the world will also increase by Japanese in foreign countries.
Apart from these economic logics, there are some more reasons as to why Japanese Bitcoin Market is pushing up the prices of bitcoins globally.
Also Read:Bitcoin Price surges due to Japan’s adoption of it as an official mode of Payment
Making Bitcoin as a legal tender and official mode of payment, Japan has not only made bitcoin traders and bitcoin enthusiasts happy but also the local Japanese people, as they can now pay and transact through Bitcoins.
KryptoMoney.com has recently learned that two large retailer groups will start accepting Bitcoin as early as in April 2017. Coincheck, a Bitcoin wallet and exchange provider based in Tokyo, Japan is developing platforms to provide Bitcoin payment gateway services to Recruit Lifestyle Co. Ltd, a company owned by Recruit Holdings,
Not only local Japanese people, but Foreign tourists will also gain advantage of paying in Bitcoins. It is also expected that Bitcoin, which is used by many foreign tourists will also lead to a further boost in tourist spending in Japan
Also Read:
New Zealand opens another Bitcoin Exchange.
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