Is Japan all set to reclaim its status in the world of crypto?

Is Japan all set to reclaim its status in the world of crypto?

October 25, 2016/ Deepak Bharadwaz

Mt.Gox is singularly regarded as the worst event to happen to Bitcoin development throughout the digital currency’s course. This has resulted in the onset of a bearish trend in the bitcoin markets for over a year. Ever since Bitcoin has taken good time to recover solely on the basis of widespread adoption and Venture capital backing. The Bitcoin eco-system in Japan has recovered cautiously from that point and now has improved tremendously. Let’s look into how Japan slowly recovered from the debacle:

Launch of new and diverse Exchanges:

Initially, bitFlyer, the exchange which succeeded Mt Gox in Japan, managed to raise $4 million in first round of funding. After that many exchanges were launched to recapture the vacuum created by Mt. Gox. BitOcean, Kraken and ANX are few initial examples of exchanges that have been thriving on Japanese Bitcoin markets. These exchanges were implementing strategies that would lead to better adoption of the currency in Japan. This way they envisaged to capitalize on the open market left by Mt. Gox that at one time accounted to 70 % of Bitcoin transactions in the world.

Currently Coincheck and Zaif are gaining major traction due to their various initiatives that are reaching to the Bitcoin demographic.

Lucrative platforms that attract customers:

As a means of increase adoption and attract customers, exchanges have been providing convenient platforms for trading. bitFlyer launched ‘chainFlyer’ a block explorer that provides illustrated environment to explore the ledger. It also launched ‘bitFlyer Lightning’ a professional trading platform targeting professional traders and a good chunk of market share.

On similar lines Zaif bitcoin exchange launched an investment service that has been gaining lot of attention. The investment service is dollar cost averaging investment service. This is particularly lucrative because you can protect yourself from the risk of investing money at the wrong time. By following a consistent pattern of adding new money to your investment at right time, risk will be averted.

Increasing merchant adoption and Regulation backing:

Owing to great publicity, over 48,000 merchants accept Bitcoin in Japan. So as to make Bitcoin a part of daily life, Coincheck has enabled payment of utility bills through Bitcoin. They have a dedicated ‘Coincheck Electricity’ platform that makes this possible. Having bitcoin payment available for something like a utility bill, that has a reliable image, will definitely put bitcoin in positive light.

Even the Regulation has been positive for the cryptocurrency. Recently the 8 % sales tax on Bitcoin has been abolished, showing how willing the authorities are in aiding the currency’s growth.

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