Categories: CryptoNews

Japan’s Economic Woes Can Be Beneficial For Bitcoin

Nearly every economy in the world is struggling right now, thanks to the global financial crisis. Japan is one of the few countries in Asia where there is, in fact, economic growth. Then again, a 0.2% boost in GDP is not that spectacular either. The approach of pumping more money into the local economy is no longer providing adequate results.

Japanese Yen Surge Badly Hurts The Economy

In this day and age, the financial ecosystem we live in has turned into a very odd creature. National currencies losing value spells imminent problems, but the same applies to those currencies surging in value. The

Japanese Yen is one of those coins which, due to its price increase, has been hurting exporters in the country.

As the exports in Japan nearly grind to a halt, the business investment money start drying up pretty quickly. These troubles have been plaguing the country ever since its 2014 recession. Over the past few years, Japan has been pinballing between growth and contraction ever since, and there is still the threat of

deflation looming overhead as well.

It has to be said, the Bank of Japan does everything they can to get the economy on the rails again. After purchasing vast amounts of assets, they also pushed interest rates in the red. While it may seem the Bank of Japan is hitting the proverbial glass ceiling of what they can do, experts are blaming the monetary policy approach for the lack of results.



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For now, the Bank of Japan will continue its current course. More money will be thrown at the problem in the hopes of creating a fiscal stimulus. Unfortunately, foreign and domestic investors have rejected this plan, and it is doubtful the current monetary policy can make a difference.

None of this is good news for businesses and individuals living in Japan right now. In fact, it is not unlikely other investment opportunities will be explored moving forward. Japanese exchanges have been an uptick in

Bitcoin volume over the past few months, and that trend may continue for the foreseeable future.

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JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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