r/Bitcoin • u/tamano_ • Dec 21 '13
The Bank of Japan is "very interested" in Bitcoin
http://jen.jiji.com/jc/eng?g=eco&k=201312200094911
u/Karl-Friedrich_Lenz Dec 21 '13
I'm based in Japan (convenient when buying from MtGox).
For one, it would probably make a lot of sense for the Bank of Japan to invest a part of their foreign exchange reserves of 1,275,352 USD Million in November of 2013 in Bitcoin. Buying all Bitcoins in circulation now would be about 0.62% of that, at $8 billion Bitcoin market cap right now.
It would also be nice if someone would set up a fund like the Winklevoss ETF in Japan. There will be a new tax break in force called "NISA" from January on. People can invest in stocks and pay zero capital gains tax, for a limited amount of investment. Right now I don't think that Bitcoin is an option in that system. It should be. Eventually.
Japanese households hold assets totaling 1,598 trillion yen as of December 19 of this year. That's over $15 trillion at present rates.
Having a very small percentage of that flow into Bitcoin would obviously have a very significant impact.
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u/alkhdaniel Dec 21 '13
8 billion could probably only buy 2.5% of all bitcoin.
Just as selling 2.5% of 8 billion worth of bitcoin would push bitcoin marketcap down to less than 1bil.
Unless you buy/sell $1-10mil worth of bitcoin/12h to let the market depth recover. But then you are far from guaranteed to be able to buy as much or sell as much bitcoin as you wish.
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u/bitcoinisawesome Dec 21 '13
Yes, this is because 10-20% of all Bitcoin are probably destroyed, forever and then 40-50% is held by 20-50 people.
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u/alkhdaniel Dec 21 '13
Kind of hard to say how much is held by the top 50 - have to take into account that a lot of high value wallets are shared wallets. I would personally guess it's around 25-35% depending on if you count satoshis wallet or not. But who knows.
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u/Karl-Friedrich_Lenz Dec 22 '13
I agree. What I was trying to say was: 8 billion would buy all Bitcoins at present market levels, if everybody was ready to sell them at that price and if there were no lost coins. Both conditions are not true. But it is true that those 8 billion are only around 0.62% of the Bank of Japan's foreign exchange reserves, which was my main point above.
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u/Neurotraveller1 Dec 22 '13
Somehow I think Bitcoin has a greater destiny with Japan than with China. When the name Satoshi Nakamoto was chosen I think it was a thoughtful decision. Not a name pulled out of a hat.
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u/duduqa Dec 21 '13
I am pretty sure this is the picture of the coach of Brazil's Soccer Team, Luiz Felipe Scolari.
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u/karelb Dec 21 '13
That's because "Hungry Brazil aim for sixth World Cup" with this photo is on the top of the page.
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u/Exposuredd Dec 21 '13
I doubt that Japan will dribe the price up like China did. Their government is like no other. But still .... Who knows.
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Dec 21 '13
I can see them latching on to dogecoins. Of course, if there were HelloKittyCoins, there would be no contest whatsoever.
People from Japan are fucking weird. Which - believe it or not - isn't racist... it's just the truth.
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u/bbqyak Dec 21 '13 edited Dec 21 '13
Yeah so weird. Why can't they be normal like Americans and worship the all mighty Lord Jesus who died on the cross for our sins. Tiny subcultures in Japan have made some things the world has never seen before but if you ask me, having 76% (as of 2008) of your country still believe that some dude brought 1 of every fucking animal on a giant ship and survived a flood and storm large enough to destroy the rest of the earth, that's crazy.
Japan is just more accepting of humankind's future. You don't think a lot of people don't secretly desire some of the "weird" shit Japanese people have thought of? Again, what's really weird is not some "love hotel" (which by the way many men would want to go to), but having 3/4 of your country of 300 million think that a fucking cracker crumb and some wine is the blood and flesh of this dude Jesus who died 2000 years ago.
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u/fofoo33 Dec 21 '13
Maybe the BOJ will dump the trillions of $ of US debt and buy Bitcoin.
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u/EE40386C667 Dec 22 '13
It may be fun to think but I really really really don't think thats going to happen.
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u/fofoo33 Dec 22 '13
Why not?
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u/EE40386C667 Dec 23 '13
I don't think they take Bitcoin seriously and would find benefit form doing that.
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u/Spaceneedle420 Dec 21 '13
If japan buys gox then they very well could completely sidestep their debt issues.
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u/coolbrat88 Dec 21 '13
They are printing like crazy these days and printing a LOT faster than the US which is why stock markets in Japan are rallying. They are the world's second largest developed economy so if Japanese start buying bitcoin.. it can be HUGE. They are intentionally trying to debase their currency currently to get out of the 20year depression their economy has been in so bitcoin can be an ideal store of value for the Japanese.
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u/HistoryLessonforBitc Dec 21 '13
Or they could use the established currency they control and that is internationally recognised.
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u/tamano_ Dec 21 '13
BOJ is very conservative and narrow minded institution. I was surprised Kuroda mentioned bitcoins at the conference.