Why is Bitcoin so Big in Japan?

Japan is always at the forefront of cutting edge technology, and so it is really no surprise that cryptocurrency Bitcoin is so popular in the capital of business and innovation. Never a country to shy away from new ideas and concepts, especially those that others may find a little “scary,” it does make sense that Japan is embracing Bitcoin so heartily.

 

In fact, the Japanese bitcoin market is so extremely competitive that almost all the exchanges charge no fees and with many changes in their government and economy, it is no real wonder that the people of Japan have looked towards Bitcoin as an alternative currency, benefitting everyone.  

 

As the third biggest economy in the world (after China and the US) it is almost unbelievable to think that their interest in Bitcoin is so incredibly high. It also goes against everything that was predicted and theorized when Bitcoin began to gain traction. It was assumed that countries with weaker currency would be most likely to take on Bitcoin as it would be worth more than their homeland currency and therefore make the most sense to trade in. With the only real resource being an internet connection, there was nothing stopping this from being true and realized, except that this is not what has happened. The fact that such an economic giant as Japan has got on board (and not only that but appears to be leading the herd!) is something of a surprise to economists!

 

Interestingly, and unlike many other countries, Japan has regulated Bitcoin and accepted it as an official currency. They have also eliminated the sales tax for purchases with Bitcoin, which of course encourages this more. There are around 5000 merchants in Japan who are accepting Bitcoin as a method of payment.

 

Another surprising aspect of this is the fact that there are insurance companies in Japan who are willing to cover the loss or theft of Bitcoin. This is difficult to police due to the very nature of the currency, but it does show that Japan really is taking this seriously.

 

With such a large, stable and influential country, one that is always at the forefront of new technology, making this change it is surely only a matter of time before other countries follow suit. Of course, the chances are that by the time the rest of the world catches up, Japan will be several steps ahead. Again.