Bitcoin Forum

Hi guys,
I play with the idea of ​​watching a couple of usd / jpy and at the same time yields from ten-year bonds of both countries. These two quantities correlate strongly, and when there is the difference and Japanese yen starts to strengthen, it could mean that they are going to buy more bitcoin in Japan. What do you think about it?

I think that at the moment Bitcoin doesn't follow any bond yelds. So is better to work for find some arbitrage on spot Btc-usd-JPY triangle...

Japanese yen is going down mostly because of the North Korean threats.I think that the USD is going down as well.I hope that the Japanese will buy more bitcoins during the end of the summer,they will buy more btc if the yen is weaker,not when it "starts to strengthen".
Anyway,the threats from Kim will stop,this is his "normal" behaviour. ;D

Fiat is really depends on its government, if there is a problem in the internal of government the fiat value will decrease.

If the yen strengthens, japan usually buys american currency to weaken the yen in comparison to the dollar, to boost their exports.

Buying the yen increases demand for the yen. Increased demand translates to the value of the yen rising which is typically what nations avoid to raise their export numbers as much as possible.

Of course, boosting exports primarily benefits corporations. A stronger yen benefits the average person and consumers. There are strengths and weaknesses to weakening/strengthening currency that are often not commented on.

It's not correlate to each other, The Japanese try to choose bitcoin as they won't depend on the dollar. the bitcoin gives the freedom that makes the impact by the dollar for the Japanese yen will be decreasing a lot.
It's about the release the dollar's domination from the Japanese yen.

To certain extent this might look beneficial, but when calculated on the whole what you get will be a downfall. The markets doesn't correlate, because even when we discuss about USD and Yen not Japan and USA contribute. Several other countries too will contribute, so the external force will always be playing big role. So taking this to consideration can understand the reality.

The basic principle is that the Japanese invest a lot in foreign currencies because of the 25-year-long BoJ policy. Yen has previously been the only currency to carry trade, after 2008, of course, it has changed. If Japan wants to invest in btc, it will withdraw its original cross-border investment, reversing it back to yen, and therefore would yen strengthen. At that point, this should be seen as a contradiction between the usd / jpy correlation and the ten-year bonds

As far as I know, many nations use the method of buying foreign currencies to weaken their own currency with the end goal of boosting exports which primarily benefit large corporations & shareholders.

The united states and many other nations do the same thing. A stronger yen would benefit the average japanese and give them more buying power. A weaker yen benefits mainly the private sector & investors.

Not sure about it, bitcoin price measure by trading volume, its constantly increase rather than decrease over time.
Even though if jpy strengthen but bitcoin price also increase, which mean japanese people can't buy more bitcoin.
Fiat currencies tend to lose its value over time due to inflation, so it's better to buy bitcoin as soon as possible instead of waiting for 10 years for jpy strengthen compare to usd.

I do not pay any attention to JPY/USD as the fluctuations are low. I am interested in Bitcoin and crypto because there is a great chance for profit.

This is quite different, here we are talking about Japanese money, because they had twenty years of low interest on savings accounts, led them to invest abroad owing to higher interest rates. An exemplary example before 2008 was Iceland, where local domestic banks, thanks to a high interest rate on deposits, attracted capital from people from abroad. The volume of funds that he has invested is multiplied by their total GDP and then, of course, resulted in the collapse of their banks. After the fukushima disaster, there was a similar happening, but there were Japanese insurance companies and reinsurance companies that started to withdraw capital from abroad and convert it back to yen, so there was such a brutal strengthening of the yen

This theme is about Bitcoin, more preciously this topic is about how you could know in advance that buying bitcoin in the world is going to be in Japan. You will soon find that Japan will play an important role in the bitcoin price

Low JPY is always good for Japan's economics, by the way ;)

Yes that's true due to their exports but this is nothing to do with the bitcoin price

Quite possible. But I would not begin to experience on this occasion. It can be Japanese yen simply becomes stronger on a background economic news from Japan.