Bitcoin: A "dream" for Japanese investors?
In Japan, savings rates are pitifully low and pensions are in jeopardy. Faced with this dilemma, many Japanese have begun to turn their attention to Bitcoin. Can this virtual currency really be their "lifeline"? Let's find out.
Why do Japanese people like Bitcoin?
Japan's savings interest rates are so low that it makes people sad. Imagine that you have worked hard to save a large sum of money, but the interest the bank gives you is not as much as the money for a lunch. In this case, who would still be willing to put their money in the bank? Therefore, Bitcoin, which seems to bring high returns, has become a hot commodity.
Japan also has a serious problem - pensions. The population over 65 years old in Japan accounts for 26% of the total population, and everyone relies on pensions for retirement. However, the government's pension fund is in deficit, and even lost $51.8 billion in 2015. Many people worry that by the time they retire, their pensions will have been spent. Therefore, more and more people are beginning to consider investing in Bitcoin to protect their retirement life.
What is the appeal of Bitcoin?
Japanese housewives, the so-called "Mrs. Watanabes", are the main force in Bitcoin investment. They used to be frequent visitors to the stock and futures markets, but now more and more people are turning to Bitcoin. Why? Because the increase in Bitcoin is too tempting!
According to data from Bitcoin exchanges, the price of Bitcoin has risen nearly 140% this year. Even after the correction, the value of Bitcoin has increased significantly relative to the yen. Mutsuko Higo, a 55-year-old social insurance consultant, bought Bitcoin for $1,800 in March. She said: "When I first heard about Bitcoin, I was so excited that I couldn't sleep all night. It felt like I bought a dream."
The risks of Bitcoin
However, Bitcoin investment is not without risk. At the end of May this year, the price of Bitcoin suddenly plummeted by 30%, causing many Japanese investors who chased the rise to suffer losses. The price of Bitcoin is extremely volatile, and if you are not careful, you may lose all your money.
In addition, Bitcoin also faces regulatory issues. Although Japan has recognized Bitcoin as a legal payment method, other countries have different attitudes. For example, the US financial regulator is cautious about Bitcoin and is unlikely to allow the issuance of Bitcoin ETF fund products. China's regulatory authorities have imposed strict restrictions on Bitcoin investment.
The Future of Bitcoin
What will be the future of Bitcoin? Some people believe that the rise of Bitcoin is just a temporary bubble that will burst sooner or later. Others believe that Bitcoin will become an important payment method in the future and may even become a value-preserving asset like gold.
In any case, Bitcoin investment requires caution. Don't put all your eggs in one basket, especially for such high-risk investments. For ordinary investors, rational investment and doing what you can are the most important.
