Analysts Yoshiyuki Suimon and Kazuki Miyamoto claim that the Gross Domestic Product (GDP) of Japan will increase by 0.3% in the initial three months in 2018. towards the end of 2017, this currency helped in the increase of market capitalization by Yen 12 trillion. The analysts say that if this latest trend keeps on increasing it would help in expanding the Japanese personal consumption to Yen 0.4 from Yen 0.2 billion. The experts have named this event as “the bitcoin effect”.
Experts of Nomura such as Yoshiyuki Suimon and Kazuki Miyamoto, explain that the Japanese relationship with bitcoin is slightly different than what it is with other economies. Nomura’s investor had personally liked the mining procedure of bitcoin.
How it is affecting the GDP of Japan?
The report produced by Nomura was similar to the report produced by Deutsche Bank AG. For them the major reason of GDP improvement because of Bitcoin can be:
Gained Retail Trader’s Trust
Under this report, they believe that the retail traders of Japan are making a shift from “leveraged foreign exchange trading” to “leverage trading of the crypto currency”.
The maximum foreign exchange is done in Japan
Nikkei was offered the same study which showed Japanese being involved with half of the world’s foreign exchange traders. Therefore, it was obvious that a global crypto currency would get attention by a minimum of 40% of the Japanese population which would eventually help it in rising in the last quarter of this year.
According to the analysts of Nomura, the GDP increase which was seen in the last quarter of 2017 will be carried forward in the initial months of 2018. The analysts have a fixed formula i.e. every increase in the value of the asset worth Yen 10 billion would give an increase to the consumption in the proportion to Yen 0.4 by Yen 0.2 billion.
Increased the value of Yen at the maximum level in last 15 years
After the trading in crypto currency was formally allowed by the Payment Services Act in early 2017, the people of Japan started investing in bitcoins. Japan, known as the land of rising sun, filled the vacuum which was created by the Chinese government after it made its Yuan powerless in terms of crypto-currency. And in the last three months of 2017, the world’s most famous digital currency extended Yen 12 trillion in the market cap leading to the Bitcoin Effect.
- Some financial sectors may utilize the coins provided by the major banks.
- Some can have the benefit of transferring the money from one region to the other systematically without hassle.
- The increase in the GDP of an important economy is not just guesswork. It actually means that the digital currency has a lot of scope in the coming times to help an economy grow.
Just wait and watch and see the magic of Bitcoin growing at the max. When countries like Japan and America are willingly accepting the Bitcoin, the day is not far when Bitcoin will be legal and the maximum money exchanges will happen in Crypto Currencies.
The presented content may include personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for you personal financial loss.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
A computer science engineer, I have been adamantly following the blockchain and cryptocurrency industry for the past 2 years. A crypto enthusiast and hardcore blockchain follower. Reach out to him at [email protected]