ABOUTWhat is a Cryptocurrency?
“Fusion Coin”, which launched in 2015, is one of a range of different virtual currencies in the market at present. In this section we define what virtual currencies are, explain how they will grow in the future, and outline their prospects.
- What is a Cryptocurrency?
- A cryptocurrency is a new concept: a digital currency with no physical basis that can be exchanged,
bought and sold, and used as payment over the internet.
The Beginnings of cryptocurrencies and Their Worldwide Development
Bitcoin, the first “cryptocurrency” in the world, is widely known. It developed as a result of a white paper published by Satoshi Nakamoto in 2008. Volunteers from around the world were inspired by the notion of a worldwide currency that was not under any national jurisdiction, and worked on developing the currency. Even after the Mt. Gox incident, which led to the loss of bitcoins worth ¥10 billion, trust in the bitcoin system has not wavered. The currency continues to grow and is now well-known in Japan.
Satoshi Nakamoto paper published.
The first bitcoin transaction takes place.
The first payment in bitcoin takes place.
Time publishes a feature on bitcoin Several new virtual currencies appear.
A bitcoin ATM is launched.
Japan’s first bitcoin exchange is formed.During Cypriot financial crisis, the value increased by 10 times in 2 days.
Japanese TV produces a feature about bitcoin.
Mt. Gox, the largest exchange at the time, ceases trading.
The European Judiciary Court rules that bitcoin is exempt from VAT.
Services handling bitcoin payments in Japan continue to increase, and introduced by major corporations.
Bitcoin’s price rises worldwide.
The Financial Services Agency recognizes cryptocurrencies as “currency” in Japan.
In 2017, virtual currencies were formally recognized as a currency format in Japan. Awareness of virtual currencies has grown significantly compared to previously. However, if we consider “Ripple”, an archetypal cryptocurrency, it is still used in only 4% of transactions in Japan compared to 32% in America. The history of virtual currencies in Japan has only just begun.
The Four Benefits of a Cryptocurrency
Attraction as a Speculative Investment
With low interest rates on bank accounts becoming standard, virtual currencies, with their broad price fluctuations, are drawing attention for their speculative qualities. The market will continue to expand and grow in future as interest rises.
Virtual currencies tend to appreciate in value if they are held over the long term. Investment diversification is an effective way of minimizing risk, rather than just holding all assets in a single investment.
Reductions in the Cost of Remittances and Sending Money
Virtual currencies do not require banks or clearing houses. This means the cost of payment or money transfer fees is dramatically reduced, meaning virtual currencies are quick and convenient for making payments or sending money. Banks are now becoming more active in handling virtual currencies due to this convenience. This will underpin further growth in the development of virtual currencies in future.
Virtual Currencies Can Be Used Worldwide
Unlike legally designated currencies such as the dollar, yen, or euro, virtual currencies can be used as a common currency anywhere in the world. Individuals and corporations can make payments or send money all over the world, and virtual currencies can be used without the restriction of national borders.