Will Japan’s Declaration of Bitcoin as Legal Tender Make it Mainstream?

Posted on by Timothy Hare

It’s being reported by Sputnik News and other sources that Japan has declared Bitcoin to be legal tender. As of yet, this has been unconfirmed by Japanese sources. The use of BTC (bitcoin) as legal tender in one of the world’s leading economies is a big plus for Bitcoin, and likely to lead to a much more rapid pace of adoption. Volume is growing on increasing price.

Be aware that volume on exchanges doesn’t necessarily equate to gross transactions. There are OTC (over the counter) transactions and P2P (peer to peer) transfers via the blockchain, a form of an online financial ledger (see http://Veritaseum.com). There is one thing that is apparent, though. Japanese Yen is the new Bitcoin darling, replacing Chinese Yuan in terms of BTC trade volume on exchanges.

In full disclosure, the blockchain doesn’t show this difference this morning, although it is very clear that CN Yuan not only lost the 90% volume title, but is no more than 25% of US volume after the Peoples Bank Of China clamped down on KYC/AML (know your customer) and margin lending in Chinese bitcoin exchanges


What is Bitcoin?

Initially having high volatility since its inception in 2008 by as yet unknown creator, bitcoin started as worth 0.30 USD and fluctuated as high as US$1,242 in 2013. It is currently stabilized at $978. According to The Wall Street Journal, as of April 2016, bitcoin is starting to look slightly more stable than gold

The decentralization of money offered by virtual currencies like bitcoin has its theoretical roots in the Austrian school of economics, especially with Friedrich von Hayek in his book Denationalisation of Money: The Argument Refined, in which he advocates a complete free market in the production, distribution and management of money to end the monopoly of central banks.

Bitcoin appeals to tech-savvy libertarians, because it so far exists outside the institutional banking system and the control of governments that print currency at will thus greatly reducing its value via inflation. (see Ron Paul’s End the Fed ). Is Bitcoin the future of currency?

About the Author

English Christian biohacker wannabe. Brain, mind and spiritual health are key, plus coffee, lots of coffee.