All eyes on Japan in 2018

[J Gambler]

***************************************************************************************************************
This paper presents the situation of the cryptocurrency market at the end of 2017 and the challenges that the crypto community still faces. Thanks to its crypto friendly legal framework, Japan should be the country to watch in 2018. The currently high transaction fees of Bitcoin offers an opportunity for Japanese crypto assets to become the preferred payment method on the island and maybe in the world.
***************************************************************************************************************

Looking back, 2017 was a fantastic year for the crypto world. Investors enjoyed 20 fold returns on Bitcoin (BTC), 100 for Ether (ETH), 60 for Litecoin (LTC) and so on. It was hard to lose money in dollar terms.

This exceptional performance is the consequence of years of hard work from developers, exchanges, lobbyists, authors, etc. to make Bitcoin and the likes more known and accessible to the world.
The crypto market is becoming mainstream: institutional and retail investors are now together in this new asset class. The more, the merrier one could say.

Indeed, the influx of new joiners came at a benefit: the skyrocketing rise in value of crypto assets.

But it came at a cost too: Congested blockchains, rising transaction costs, crashing exchanges, etc.

While cryptocurrencies made a name for themselves this year, a lot must be done so that they leave their nascent state and become mature payment methods.

The time is now to scale.

On December 13, Vitalik Buterin, the Founder of Ethereum, challenged his followers on Twitter:

•   “So total cryptocoin market cap just hit $0.5T today. But have we *earned* it?”
•   “How many unbanked people have we banked?”
•   “How much actual usage of micropayment channels is there actually in reality?”

Without a real use case in the daily life of people, 99% of cryptocurrencies and tokens will be remembered as a funny investment that turned out to be a mirage.

Bitcoin is here to stay.

It has the first mover advantage, the biggest network, fair incentives and its scarcity makes it the true digital gold. It’s the benchmark of all crypto assets. For these reasons, Bitcoin will survive and at least act as a store of value.

However, Bitcoin was also designed to be a medium of exchange but it is now too slow and too expensive to use. Being the first mover also has its flaws. Bitcoin blocks are 1 Megabyte big and occur every 10 minutes. That is not enough to cope with the thousands of new transactions happening every minute. Bitcoin miners include the transactions with the highest fees attached in the blocks.
This is how Bitcoin is no longer viable as a medium of exchange for small transactions.

It may be temporary though.

The introduction of the Lightning Networks (LN) solution to the Bitcoin network will make Bitcoin great again.
But when will that happen?
Will the community tear itself apart as it did when the Segregated Witness (Segwit) solution was launched this summer? Nobody knows. There may well be another 12 to 18 months of developments and hiccups along the way.

So what will happen in the meantime?

Now that millions of people have become aware of cryptocurrencies and that the Bitcoin blockchain is in limbo, there is an immense opportunity for an altcoin to become the preferred coin for transactions.

Let’s remember that the value of a coin mostly depends on the size of its network. The more people use it, the higher its value.
Also, the number of merchants accepting Bitcoin vs credit cards is still low worldwide. A successful altcoin could in no time take over Bitcoin as the preferred coin by merchants.

Therefore, this is no surprise that the Bitcoin cash (BCH) supporters are so vocal in the media. BCH offers lower transaction costs thanks to its 8 Megabytes block size. It could thus fill the gap.
Litecoin (LTC) is another contender. It’s a clone of Bitcoin with larger and more frequent blocks. It has Segwit too.

In the end, the users will decide which coin they endorse.

But the legal framework plays an important role here.
In most countries, the legal status of Bitcoin and cryptocurrencies is still unclear. Why would merchants accept cryptocurrencies that are uneasy to apprehend and that the government can ban overnight?

Japan gave cryptocurrencies legal tender status in April. This is a massive step for a rapid adoption by Japanese people and merchants.
Which coins are they likely to endorse for payments?

BCH? LTC? Probably not. These coins are known in Japan but probably lack the support of the local crypto communities.

And Japan has its own altcoins: NEM and MONA. They are very different in design.

NEM is similar to Ether as it enables the creation of NEM powered blockchains and smart contracts. There are 9 billion tokens that were premined. Transactions are validated by nodes, based on a Proof of Importance method.

MONA is a fork of LTC with more frequent blocks. It is popular with gamers and is even accepted by IT stores. Coins are mined by the traditional Proof of Work method.

Both coins enjoy strong local support and can be purchased directly against Fiat on the Japanese exchanges.

This is why Japanese altcoins shall be monitored closely in 2018.

Their adoption by local merchants shall be facilitated thanks to the clear legal framework for cryptocurrencies in Japan and the work of their communities.

Should they become widely adopted in Japan, the network effect could make them very popular in other parts of the world.

Calangaman
Published on Bitcointalk on 27 Dec 2017

JAPan can be a crucible for all pur concerns regarding cryptocurrency it can be our savior and it can also be our downfall depending on what and how japan would handle cryptocurrency or bitcoin on their country as they are considered the most advanced

[bricevdv]

very interesting overview, for me Japan has always been innovative in technology, and there is no surprise it is going to lead the crypto development.
I have relatives living in Japan, cryptos are getting more popular there, however it is still the beginning since a lot of people have no idea about what it is, similar as France where I am from.

Therefore it think it is a good time to get onboard, i got few alts and BTC of course, and have invested as well in MONA, since few months I am reading (getting translation from japanese friends) more and more articles, and they are talking about 5000 yen (44usd) per unit of MONA on a mid term probably in 2018.

Some people are already thinking about the Olympics in 2020, and if the crypto acceptance is still moving that fast there until then, there is no reason it will expand to other countries.

Among the comments, somebody was saying he will not focus on a crypto targeting one country. I don't agree, since first Japan is really active in the Asian area, and is followed by more countries, and Japan is exporting more than importing and will therefore have impact worldwide.

I believe in the crypto as asset and it seems these are keepers

[buwaytress]

very interesting overview, for me Japan has always been innovative in technology, and there is no surprise it is going to lead the crypto development.
I have relatives living in Japan, cryptos are getting more popular there, however it is still the beginning since a lot of people have no idea about what it is, similar as France where I am from.

Therefore it think it is a good time to get onboard, i got few alts and BTC of course, and have invested as well in MONA, since few months I am reading (getting translation from japanese friends) more and more articles, and they are talking about 5000 yen (44usd) per unit of MONA on a mid term probably in 2018.

Some people are already thinking about the Olympics in 2020, and if the crypto acceptance is still moving that fast there until then, there is no reason it will expand to other countries.

Among the comments, somebody was saying he will not focus on a crypto targeting one country. I don't agree, since first Japan is really active in the Asian area, and is followed by more countries, and Japan is exporting more than importing and will therefore have impact worldwide.

I believe in the crypto as asset and it seems these are keepers

I always felt that Japan's moves - official and unofficial - would be the blueprint for the rest of the world to follow. What surprised me was that not more countries, especially the neighbours and regional governments, picked up in the same directions, given that early success appears to be on the horizon. I think they have come a long way from dealing with the shock of Mt Gox, to giving legitimacy to Bitcoin and now surreptitiously aiding its use and adoption.

But time will tell if what they've done is enough. I appreciate the sentiments of those like Koji Higashi who believe not enough is done, and that the regulations so far are will fail if put to the test. But at least there will be a benchmark to test!

[FrenchCoffeezS]

I think in any cases bitcoin can transact around the world and japan can also adapt bitcoin. I am dreaming also that can is stay have tourist ,visa to japan.

[cryptojohn9]

The popularity of Bitcoin is increasing day by day. Not only Japan, let's see what will happen in other countries. In near future 2018 will more crazy in Bitcoin world.

[p i e c e]

The Eastern Asia and Japan is really the region where situated the center of modern cryptocurrency world. There are a lot of people there who will become the holders of coins and users of all those digital platforms.

You can also look to Sumo coin - also from Japan. New coin and it is now rocking!!!

[swogerino]

I expect nothing less from Japan knowing how advanced those people are in technology and gadgets. Japan has also one of the biggest malls of the world where you can use Bitcoin to buy things there directly being a leader in real world Bitcoin usage. If they move up one step more in 2018 this can only be positive for Bitcoin.

[n0ne]

In 2017 with the support from Japan government the growth to higher level begun progressing good in terms of value as well in terms of spreading to people who are new to bitcoin. The government itself promoted its usage and by 2018 too such a kind of support is expected from Japan leading bitcoin and make it reach the global population.

[alani123]

The use cases of crypto are a bit overstated in my opinion. Prices are all speculation and traders know that perfectly well.

However, it doesn't mean that this massive flow of capital hasn't created some actual innovation. I'd really like the open source nature of cryptocurrency to grow because even if the economy becomes a thing of the past the only way for it to leave something behind would be if the technology survived.

Also, cryptocurrency hasn't been about giving back to the world's poorest. It's so far been trying to take wherever it can from people that actually do have the money to give. Never before has technology and innovation been rewarded at such a rapid rate. It's all a game of free markets and literally anyone could profit out of it. Poor or rich. The distribution of wealth crypto allows for is something new and Vitalik better not badmouth other cryptos.

[Faucon]

Thank you for this article. I just  returned from Japan and decided to invest in bitcoin and mona as I saw stores accepting them. What is a good exchange to buy ? I live in belgium and i just start.

[yoseph]

OP has indeed made some very good points in the little essay that he wrote, There are some good information here that he brought up that could be very good in terms of investment especially the Alt Coins in Japan which is indeed a country that we must watch.

[Sum24]

I think in any cases bitcoin can transact around the world and japan can also adapt bitcoin. I am dreaming also that can is stay have tourist ,visa to japan.

Yeah the year 2017 is the good for Bitcoin because the Japan accepts Bitcoin as legal in their country. So the year 2018 should be the best year for Bitcoin in Japan. Because the previous history of Bitcoin shows that Bitcoin is good for that company or country that legalize Bitcoin. The popularity of Bitcoin is growing in the most advance countries is that represent Bitcoin’s future is too bright. All the businessmen keep eyes on Japan that how Bitcoin grows in their government.

[Mr.Zagato]

Agree with the author. After a tremendous 2017 with BTC going mainstream and so many altcoins posting multiple digit profits, it was hard to lose money. Now 2018 could be a year with increased selectivity and picking the right coins will become more important. MONA definitely a card to play.

[Calangaman]

Thank you for this article. I just  returned from Japan and decided to invest in bitcoin and mona as I saw stores accepting them. What is a good exchange to buy ? I live in belgium and i just start.

Thank you. You can open an account with Bitstamp to buy BTC and with Bittrex to convert some BTC into MONA.
This said, Bittrex is freezing new accounts now. So you may want to buy MONA thru one of your contacts in Japan.

[BabyBoss]

***************************************************************************************************************
This paper presents the situation of the cryptocurrency market at the end of 2017 and the challenges that the crypto community still faces. Thanks to its crypto friendly legal framework, Japan should be the country to watch in 2018. The currently high transaction fees of Bitcoin offers an opportunity for Japanese crypto assets to become the preferred payment method on the island and maybe in the world.
***************************************************************************************************************

Looking back, 2017 was a fantastic year for the crypto world. Investors enjoyed 20 fold returns on Bitcoin (BTC), 100 for Ether (ETH), 60 for Litecoin (LTC) and so on. It was hard to lose money in dollar terms.

This exceptional performance is the consequence of years of hard work from developers, exchanges, lobbyists, authors, etc. to make Bitcoin and the likes more known and accessible to the world.
The crypto market is becoming mainstream: institutional and retail investors are now together in this new asset class. The more, the merrier one could say.

Indeed, the influx of new joiners came at a benefit: the skyrocketing rise in value of crypto assets.

But it came at a cost too: Congested blockchains, rising transaction costs, crashing exchanges, etc.

While cryptocurrencies made a name for themselves this year, a lot must be done so that they leave their nascent state and become mature payment methods.

The time is now to scale.

On December 13, Vitalik Buterin, the Founder of Ethereum, challenged his followers on Twitter:

•   “So total cryptocoin market cap just hit $0.5T today. But have we *earned* it?”
•   “How many unbanked people have we banked?”
•   “How much actual usage of micropayment channels is there actually in reality?”

Without a real use case in the daily life of people, 99% of cryptocurrencies and tokens will be remembered as a funny investment that turned out to be a mirage.

Bitcoin is here to stay.

It has the first mover advantage, the biggest network, fair incentives and its scarcity makes it the true digital gold. It’s the benchmark of all crypto assets. For these reasons, Bitcoin will survive and at least act as a store of value.

However, Bitcoin was also designed to be a medium of exchange but it is now too slow and too expensive to use. Being the first mover also has its flaws. Bitcoin blocks are 1 Megabyte big and occur every 10 minutes. That is not enough to cope with the thousands of new transactions happening every minute. Bitcoin miners include the transactions with the highest fees attached in the blocks.
This is how Bitcoin is no longer viable as a medium of exchange for small transactions.

It may be temporary though.

The introduction of the Lightning Networks (LN) solution to the Bitcoin network will make Bitcoin great again.
But when will that happen?
Will the community tear itself apart as it did when the Segregated Witness (Segwit) solution was launched this summer? Nobody knows. There may well be another 12 to 18 months of developments and hiccups along the way.

So what will happen in the meantime?

Now that millions of people have become aware of cryptocurrencies and that the Bitcoin blockchain is in limbo, there is an immense opportunity for an altcoin to become the preferred coin for transactions.

Let’s remember that the value of a coin mostly depends on the size of its network. The more people use it, the higher its value.
Also, the number of merchants accepting Bitcoin vs credit cards is still low worldwide. A successful altcoin could in no time take over Bitcoin as the preferred coin by merchants.

Therefore, this is no surprise that the Bitcoin cash (BCH) supporters are so vocal in the media. BCH offers lower transaction costs thanks to its 8 Megabytes block size. It could thus fill the gap.
Litecoin (LTC) is another contender. It’s a clone of Bitcoin with larger and more frequent blocks. It has Segwit too.

In the end, the users will decide which coin they endorse.

But the legal framework plays an important role here.
In most countries, the legal status of Bitcoin and cryptocurrencies is still unclear. Why would merchants accept cryptocurrencies that are uneasy to apprehend and that the government can ban overnight?

Japan gave cryptocurrencies legal tender status in April. This is a massive step for a rapid adoption by Japanese people and merchants.
Which coins are they likely to endorse for payments?

BCH? LTC? Probably not. These coins are known in Japan but probably lack the support of the local crypto communities.

And Japan has its own altcoins: NEM and MONA. They are very different in design.

NEM is similar to Ether as it enables the creation of NEM powered blockchains and smart contracts. There are 9 billion tokens that were premined. Transactions are validated by nodes, based on a Proof of Importance method.

MONA is a fork of LTC with more frequent blocks. It is popular with gamers and is even accepted by IT stores. Coins are mined by the traditional Proof of Work method.

Both coins enjoy strong local support and can be purchased directly against Fiat on the Japanese exchanges.

This is why Japanese altcoins shall be monitored closely in 2018.

Their adoption by local merchants shall be facilitated thanks to the clear legal framework for cryptocurrencies in Japan and the work of their communities.

Should they become widely adopted in Japan, the network effect could make them very popular in other parts of the world.

Calangaman
Published on Bitcointalk on 27 Dec 2017

This is very great news I ever heard about the coming 2018. Both excitements because we know that bitcoin will become one of the most payments of Japan then fear because we don't know if the bitcoin still stable in this kind of news. But probably all in all was great and I am too excited too face again another level for me to step in again with the crypto currencies in the coming 2018. Im so excited on how bitcoin exploded again and become more exposed to all.

[Washball]

This is really an eye opener for most of us. We all worship bitcoin as the best cryptocurrency, but nowadays it's lost it's value as a real currency because of the high fees and low transaction speed. It's just a matter of time that we'll see bitcoin being overtaken by other cryptocurrencies, unless these issues are solved.

[Calangaman]

This is really an eye opener for most of us. We all worship bitcoin as the best cryptocurrency, but nowadays it's lost it's value as a real currency because of the high fees and low transaction speed. It's just a matter of time that we'll see bitcoin being overtaken by other cryptocurrencies, unless these issues are solved.

Once LN is locked in, we shall see BTC becoming the ultra dominant coin again.
This article is mostly about understanding which coins may benefit from the current situation.
Thanks all for your comments

[staker$]

There must be a way to drop the cost of sending bitcoin, to speed transaction and enable payment for smaller amounts to be used for daily purchase or regular items, so we don't need any other altcoin.

[Calangaman]

There must be a way to drop the cost of sending bitcoin, to speed transaction and enable payment for smaller amounts to be used for daily purchase or regular items, so we don't need any other altcoin.

Yes, the solution is Lightning Networks

[Sithara007]

While NEM & MONA are interesting cryptocurrency, i wouldn't invest my money on any cryptocurrency which only focus on specific country.
But, i'm sure once majority users adopt SegWit and use LN, i think Japan crypto community will consider accept BTC beside NEM & MONA.

Yes of course, BTC will be accepted as long as fees drop

Right now the fee stands at 510 Sat/Byte, which is lower than what we had two weeks ago (1,000+ Sat/Byte). But even now, close to $50 is needed as transaction fee for an average transaction and the situation is not very viable. Perhaps that is one of the reasons why the dominance of BTC has dropped to 38% from the level of 61% which we had a month before.