Will bitcoin survive in the coming years?
Bitcoin – Where Does It Go from Here?
This is a question that seems to haunt many crypto enthusiasts and traders everywhere, and as time moves along, it seems the walls are closing in certain respects. For example, U.S. President Donald Trump recently issued a barrage of tweets bashing bitcoin and crypto in general, saying that digital assets were “not real money” and that their values were based on “thin air.”
In addition, Facebook’s new Libra cryptocurrency seems to have everyone rather worried. Following a congressional hearing that saw Facebook’s head of blockchain development David Marcus in the hotseat, many members of America’s Congress requested that the social media conglomerate hold off on its plans to develop Libra further until they can get all their questions answered. Marcus and the remainder of the Libra staff have reluctantly agreed.
As of late, bitcoin has been tumbling and is now trading for just shy of $9,700. This is small beans when compared to the $13,600 it was trading for just last month.
It may seem like the United States is bringing down the house on crypto, but according to one source, the real power lies in the hands of Japan, not the U.S. Japan is arguably the most influential region when it comes to cryptocurrency use, and so long as the country sees a valid need for bitcoin and its crypto counterparts, digital assets are likely to survive.
Japan has been one of the most open-minded nations when it comes to virtual money. The country declared bitcoin a legal payment option in 2017, thereby dubbing it an “official” currency of Japan. Regulators have also integrated strong know-your-customer (KYC) tactics and many other protocols designed to lessen the problems associated with crypto hacks and other malicious activity.
At the same time, the country remains vulnerable to many problems. Perhaps the biggest one is its island neighbor North Korea. Kim Jong-un has allegedly garnered more than half-a-million USD in crypto funds by initiating cyberattacks on exchanges through crypto-jacking efforts. Among the most vulnerable countries is Japan, though Kim has potentially targeted several regions in Asia and abroad.
Japan has also raised an eyebrow or two regarding the integration of Libra. Regulators say they are open-minded when it comes to Libra and feel it has its benefits, commenting:
Users would find [Libra] useful in making international money transfers because it would be cheaper than the current system.
Praise and Doubt at the Same Time
Unfortunately, in the same conversation, they also revealed that they have doubts about Libra’s reliability.
At this stage, Japan doesn’t seem to be shying away from cryptocurrency any time soon, but stronger regulation appears to be making its way into the country’s financial system at every step, which could potentially lead crypto into a greater period of stability.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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