Japan’s profit! Bitcoin for Japan’s contribution to 0.3% of the GDP

Japan’s profit! Bitcoin for Japan’s contribution to 0.3% of the GDP


Tencent financial news according to BusinessInsider website article, according to Japan’s Nomura Securities Analyst (Nomura) YoshiyukiSuimon and KazukiMiyamoto and analysis, bitcoin prices for Japan’s contribution to 0.3% of the GDP.

In a recent report to the client, and analyst YoshiyukiSuimon KazukiMiyamoto said, bitcoin prices will stimulate Japan bitcoin holders consumption, which will have a huge wealth effect, increase the GDP of japan. The report is interesting, because most analysts and economists believe that the size of the market value of bitcoin is too small, and other financial and economic ties are not how close this, thus affecting the world economy.

According to the data provided by CoinMarketCap, as of December 31, 2017, the total market value of all encryption currency for $560 billion, but in 500 retail enterprises, to accept bitcoin payments only 3 companies. But recently, the traditional financial institutions have begun to introduce bitcoin derivatives. The Chicago Board Options Exchange, Chicago commodity exchange and Goldman have taken action to clean up bitcoin futures and other derivatives.

Goldman Sachs has also started to open encrypted transaction department. Crypto currency exchanges like Bitfinex and Tokyo based bitFlyer investors borrow to buy bitcoin. With bitcoin prices rose to $20000 / gold, at the beginning of 2017 to buy bitcoin people find themselves getting richer.

The two analysts said: “the rise of bitcoin assets are hard to ignore.” In economics, the wealth effect is when asset prices are rising, economic activity can be incremental growth. Bitcoin prices will make consumers feel richer and increase their spending.

The price of some asset prices also appeared in 2008 before the outbreak of the subprime crisis, the U.S. housing prices rose sharply, the bank’s lending volume has increased significantly. At that time, the real people feel that their wealth is greatly increased. When buyers put all their money into the real estate market, the real estate market due to the inflow of funds suddenly reduced, prices fell, and caused the subprime crisis in 2008. Now bitcoin is very popular in Japan, Japan bitcoin trading volume basically accounted for 40% of the total global bitcoin transactions.

According to Nomura Securities (Nomura) evaluation: at present there are about 1 million people in Japan have 3 million 700 thousand bitcoin. Suimon and Miyamoto said: the wealth effect generated by bitcoin holders may lead to 96 billion yen ($851 million) of consumption. Nomura: evaluation on Christmas day, bitcoin market trading volume has reached 5 trillion and 100 billion yen ($4 billion 520 million). This will make Japan this year bitcoin holders of asset value increased by about 3 trillion and 200 billion yen ($3 billion). In general, bitcoin prices will lead to increased consumer spending, which is the so-called wealth effect. In this report, we expect that the wealth effect will bitcoin since 2017 brings the promotion to Japanese consumers increased consumption of 23 billion 200 million to 96 billion yen.

Nomura Research Report is the effect of the estimated asset prices are rising wealth based on the. Nomura Securities and Goldman Sachs Group did not mention, but their data has indicated that bitcoin prices rose to promote Japan’s GDP increase, then it means that, in bitcoin prices plummeted, Japan will reduce GDP.

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