Bitcoin attracts Asian small investors
Ken Nagahama, manager of the sushi restaurant Numazuko Ginza (Numazuko Ginza), demonstrates the system for buying bitcoins in his restaurant in the center of Tokyo. The use of bitcoins is becoming more common in Japan, and numerous restaurants and shops accept payments in digital currency.
Small investors from Asia, who have already become regular investors in the stock and futures markets, were blinded by a 100% surge of bitcoins this year. For comparison, the highest growth rate on the Asian stock market reached 17% over the same period.
Bitkoyn grew only in May by 60%, which was due to the entrance of investors from Japan and South Korea, while China experienced cooling after taking tough measures by the central bank earlier this year.
Due to the recognition of Japan as a legal tender in April, information from exchangers shows that interest in these two countries has increased significantly. Bitcoin traded with a premium in both countries because of strict regulations against money laundering, because of which the purchase and sale of bitcoins is significantly hampered.
Asia has been a fertile ground for bitkoyna because of the prosperous retail investment culture of the region, where information exchange on investment is widely spread. According to the rating of CoinMarketCap, China, Japan and South Korea are home to several of the world's most trafficked currency exchange.
"Now this is a form of speculation, as well as shares," Park Hyo-jin, a 27-year-old South Korean who owns bitcoins worth about 3 million won ($ 2,700), said. "I do not think anyone in South Korea is buying bitkoyn to use it."
In April, a new law on the recognition of digital currencies came into force in Japan as a form of payment, and entrepreneurs were eager to adapt bitco-payments in accordance with the new rules.
The law also formalized rules on the prevention of money laundering and established safety and audit standards in the light of fears that bitkoyn is often used for illegal activities.
Bic Camera, one of the largest retail electronics retailers in the country, began taking bitcoins in two stores in Tokyo in May 2017. According to the Nikkei newspaper, the Gurunavi restaurant booking site will also allow customers to pay bitcoins this year.
The company BITPoint Japan Co, cooperates with Peach Aviation, to allow travelers to use bitcoins to pay for tickets. It is planned to provide hundreds of thousands of Japanese retail outlets with the opportunity to accept the digital currency.
Despite the fact that BITPoint works as a bitcoan-exchanger, it promotes the use of crypto currency in stores and other outlets, and does not use it as a speculative tool.
"We are holding discussions with the retail company," Genki Oda, the BITPoint president, said in a recent interview. "Acting through a company that provides payment terminal services to stores, we have the opportunity to increase their use in one fell swoop. It's easier than talking to a lot of individual retailers. "
Answering the question about the recent take-off of bitcoins, Oda said that he feared a sudden jump and did not think that he would be stable. Nevertheless, he notes that in the coming months several large stock brokerage companies will start trading bitcoins, increasing volumes.
Nevertheless, it is not clear whether bitco-payments can become something more than just a marketing move. The greatest obstacles are the long time of confirmation of transactions in the network and the high cost of transactions. Many participants in the bitco-community are concentrating on a proposal to eliminate this problem. However, deep disagreements within the group have already led to the fact that several similar solutions have already failed since 2015.