Cryptocurrencies

COVID-19 prompted Japanese to accumulate Bitcoin (BTC) – Cryptocurrencies

We are not going to serve you the same tourist clichés with sushi and manga about Japan. International tourism is far from being at its best, with the current health crisis. If the COVID-19 is seeing green and mature steps for companies in the tourism sector, it has rather spoiled Bitcoin and cryptocurrencies, especially in Japan.


Crypto pandemic in Japan

The Japanese organization in charge of regulating the crypto-industry, the Japan Virtual and Crypto Assets Exchange Association (JVCEA), found in a research report a dramatic increase in cryptocurrency holdings in Japan, during the month of March 2020, during the pandemic.

Number of Bitcoins (BTC) held by the exchanges amounted to 169,376 BTC, or 11% more than in February 2020.

The volumes of Ripple (XRP) and D’Ethereum (ETH) also increased by 6.4% and 5.7% respectively: the number ofETH within Japanese exchanges would be 1.14 million and that of XRP of 3.2 trillion.

This upward trend has also been observed for other cryptocurrencies like Bitcoin Cash (BCH), Monacoin (MONA) or Litecoin (LTC).

Japan and Bitcoin, a long history

The oldest crypto for young people

The reasons for this increase in the number of bitcoins held by exchanges, are not clear: cryptophiles did not hesitate at first glance to acquire more Bitcoins after the Black Thursday March 12, 2020.

One of the exchange analysts Bitbank, Yuya Hasegawa, explained that, price movements and the volume of cryptocurrency holdings are generally inversely proportional: when prices fall, users send their Bitcoins to exchanges to limit their losses and withdraw a minimum of profit.

This trend is not specific to Japan, many users around the world have invested in Bitcoin during the pandemic: the UK trading application, Fashion, reports that Baby Boomers and Generation X are the two age groups that have significantly increased their holdings of cryptocurrencies.

One of the people in charge of Fashion, Janis Legler, concludes that the pandemic has dramatically transformed the way investors do business.

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The economic consequences of COVID-19 are contributing to the rise of Bitcoin and cryptocurrencies, revealing the weaknesses of the current economic and financial system. In addition, new technologies make it ever easier to invest, and a new generation is discovering in its own way, how to invest.

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