Could this be the best time ever to buy Bitcoin?
Published on by Adam
You may, or may not, be aware that the Japanese Bitcoin Exchange Market currently holds more than 40% of the entire share of the Bitcoin market globally and, this fact considered, it is hardly surprising that fluctuations in the value of the Japanese Yen also affect that of Bitcoin. With the Japanese Yen weakening, could this be the best time yet to buy Bitcoin?
Bitcoin Legal Changes in Japan
Just weeks ago, Japan officially recognised Bitcoin as an accepted payment method- with the law coming into effect on the 1st April. And, while it may not be recognised as a currency as such- more of an asset, the increased regulation, tighter security, and higher staff training levels at exchanges dealing in the Cryptocurrency have been largely welcomed.
Why is the Japanese Yen Weakening?
In layman’s terms, and according to this Reuters article, the Japanese Yen is weakening because of the country’s monetary policy, and the adoption of quantitative easing- basically, printing more money.
It appears a tough habit to break as, while the latest drop is the most significant in a while, Japan have been deliberately affecting exchange rates through the use of government policy for over two decades.
How the Weakening Japanese Yen Could Affect Bitcoin Value
Bitcoin value is, while currently stable, volatile by nature so, while using it to play at online casinos is a safe bet, no-one would advocate investing your life savings in it.
As it is such a young currency, it is prone to fluctuations just like other currencies when economic instability arises and, as 40% of the market is controlled within Japanese exchanges, it is inevitable that any movement in value of the nation’s currency would affect it the most.
Yen falls, Bitcoin rises
But, while you might expect that a devaluation of the Yen would result in a devaluation of Bitcoin, the opposite is true. With the Yen falling, there has been increased demand in Bitcoin among traders in Asia. In fact, Bitcoin is currently at a 10-week high- already trading above $1,200, and it’s steady growth is showing no signs of waning.
To Buy or Not to Buy Bitcoin?
As stated above, if you’re looking for a long term investment, it’s doubtful any financial advisors would suggest investing it in Bitcoin but, if you’re simply looking to convert your funds into Bitcoin to play at a few online casinos, it’s possible you’ll get a bit more for your money right now if current trends continue.
Where to Spend Your Bitcoin
There are several NetEnt casinos who accept payment by Bitcoin, many of which (besides the novelty Bitcoin element) also offer an excellent casino experience. Recommended Bitcoin casinos include Playamo, Bitstarz, Loki Casino, PlayFortuna and MegaWins.