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.

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2008

Satoshi Nakamoto paper published.

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2009

The first bitcoin transaction takes place.

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May, 2010

The first payment in bitcoin takes place.

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April, 2011

Time publishes a feature on bitcoin Several new virtual currencies appear.

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March, 2013

A bitcoin ATM is launched.

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April, 2013

Japan’s first bitcoin exchange is formed.During Cypriot financial crisis, the value increased by 10 times in 2 days.

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December, 2013

Japanese TV produces a feature about bitcoin.

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February, 2014

Mt. Gox, the largest exchange at the time, ceases trading.

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October, 2015

The European Judiciary Court rules that bitcoin is exempt from VAT.

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2016

Services handling bitcoin payments in Japan continue to increase, and introduced by major corporations.

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November, 2017

Bitcoin’s price rises worldwide.

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December, 2017

The Financial Services Agency recognizes cryptocurrencies as “currency” in Japan.

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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

Benefit01

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.

Benefit02

Investment Diversification

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.

Benefit03

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.

Benefit04

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.