Its no secret to anyone that Asia is a powerhouse when it comes to global affairs and technology. While, the Western world still reigns supreme in the political, economic, and military sectors.
But Asia is making moves that will put launch it forward in a lot of very critical areas. Especially when it comes to cryptocurrencies.
As a matter of fact, Asia is far ahead of everyone else when it comes to crypto transactions, mining, and cryptocurrency related investments. Japan, in particular, has opened its arms wider than anyone else to welcome the age of crypto.
But why? It certainly helps to take a closer look at what’s going on in Asia.
Japan loves cryptocurrencies
In the last year, cryptocurrencies saw absolutely explosive growth in Japan. Bitflyer (Japanese crypto exchange) has become one of the world’s leading exchanges. Would you believe me if I told you that close to 30% of all bitcoin transactions take place on Bitflyer? They do.
Additionally, Japan is leading the world in BTC/per capita investments. It’s also home to the highest amount of legitimate businesses that use cryptocurrencies as payment methods, accepting them for goods and services.
And unlike many other countries, the Japanese government is quite pro-crypto. It even started drafting affirmative regulations which could push public trust in the cryptocurrency industry forward.
Okay, all of this is pretty amazing, but it doesn’t exactly explain why all of these things are the way that they are.
Well, Japan is so pro-crypto due to its highly tech-friendly and well-educated population that was brought up to embrace technological change and innovation.
But wait! That may not be the only reason! Did you know that Japan is going through a pretty devastating debt crisis? Japan’s national per-capita debt sits comfy at $9.5 trillion! This amount is 2.5 times their GDP.
Japan’s wealthy citizenry might be going crazy for cryptocurrencies because they view it as a great means to secure their assets, in case of the debt crisis going absolutely bananas. Rightfully so.
Do you hate taxes? Me too. But guess what? Japan’s sales tax is set to increase to 10% in about a year. The fun doesn’t end there though – because new taxes are looming on the horizon.
Bet You Thought All of China Hated Crypto Because of the Bans.
We’ve all seen the articles titled, “China bans bitcoin”, “China bans ICO’s”, “bitcoin price plummets after China ban”!
Yes, the Chinese government has a love-hate relationship with cryptocurrencies. However, most of the world’s mining is done right there, in China. Did you know that about 60% of all bitcoins are mined in China? Bet you don’t really want to set up a mining rig in your basement now. Because good luck competing with China. Additionally, Bitmain, a Chinese company builds close to 70% of all rigs used for mining.
Even though the Chinese government wants to put a leash on cryptocurrencies, it’s citizens still love them.
But why do Chinese citizens rage on in the crypto industry when their government is obviously against it?
Let me ask you a question, how much money do you save from each paycheck? 10%? 15%? Less? More? How many people do you know that go from paycheck to paycheck?
Probably a lot.
Did you know that traditionally, Chinese families place a significant amount of emphasis on saving up money? Don’t ask me why because my background in cultural studies isn’t that strong. But statistics show that Chinese households save about 30% of their income, on average.
Additionally, there are a lot of restrictions placed upon Chinese citizens by their government. You know that Facebook, Instagram, Twitter, Google, and almost all porn sites are blocked in China?
So, obviously, Chinese citizens have a massive amount of distrust for their government, stemming from these restrictions – couple that with the heavily regulated economic market, and you can clearly see why the Chinese are serious advocates for decentralized currencies and technological freedom.
And that’s the whole point of cryptocurrencies and Blockchains, to take wealth outside of banking systems, direct government control, and political idiots. While providing users with financial liberty.
Japan and China Leading the West
Japan and China are the world’s leading crypto powerhouses, for now at least. It’s important to note that any nation that holds plenty of cryptocurrencies will definitely be in a position of power, even if the government is not the main “hodler”.
Without question, other countries will start following Japan’s proactive stance on cryptocurrencies and the freedom that the Chinese seek to find on the Blockchain and in the bitcoin.
However, it would be foolish to assume that China and Japan will always be in their current positions. After all, the cryptocurrency industry is extremely volatile. Last night the price of 1 bitcoin was almost $8,000 while now, it’s currently at $6,600.
I think that you would like this video if haven’t seen it already. Sorry for the formatting.