What Does The Japanese Yen Crashing Mean for Bitcoin?
594 sats \ 9 comments \ @SatsMate 22 Jun bitcoin
Hi All - I am curious about many of your thoughts surrounding the Japanese Yen consistently becoming weaker and weaker over time.
We know that the Japanese Central Bank has propped up the Yen a few times now, and what does this mean when it comes to the global financial markets? With Japan being a G7 country, and a worldwide financial powerhouse - if the currency were to collapse severely, could contagion potentially spread across other financial markets? We are getting right next to the point where they intervened last time (~USD/JPY 160), and I can see another manipulation soon at this rate.
Things will of course get more expensive for the Japanese as it comes to imports - but taking a 10,000-foot view will we start to see a lot of Japanese pile into the dollar, gold, or Bitcoin as a result of them trying to get out of their weakening currency?
Some people have been speculating stating the reason that Bitcoin's fiat price is down is because of the weakening Yen - but I don't think this is true...
What are your thoughts on the Japanese Yen? Will this intervention of the Japanese cause more money printing - and maybe a higher fiat price in Bitcoin in the future? Will the U.S. need to intervene soon if the JCB can't prop it up anymore? It seems like all the intervention they are trying to do is landing them in the same bad place. I'd love to hear everyone's thoughts about this!
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117 sats \ 0 replies \ @Undisciplined 23 Jun
I don't have any particular insights into the Japanese economy or what kind of interventions are likely. I do have a colleague in Japan and I know they're feeling the currency depreciation pretty acutely.
That's always bullish for bitcoin adoption, because the main hurdle is people being content with their local currencies.
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75 sats \ 1 reply \ @cryotosensei 23 Jun
I don’t know much about Japanese economies as well, but I’m sure more Japanese will accept payment over the Lightning Network, as this poster about a flea market in Tokyo shared by @chungkingexpress suggests.
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0 sats \ 0 replies \ @SatsMate OP 23 Jun
Love the poster! I know Japan was one of the first places in the world to really accept bitcoin back 10+ years ago.
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42 sats \ 0 replies \ @karanjajes 23 Jun
People adopting or switching fully to bitcoin might take some time in Japan, but sooner enough reality will hit them and we might see an increase in bitcoin adoption. I don't think the down trend of the Yen has anything to do with Bitcoin's price. Nope
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42 sats \ 0 replies \ @riberet19 23 Jun
I think the Japanese people are very much rooted in the yen, but if the currency continues to collapse I have no doubt that they will start looking for options, Bitcoin will undoubtedly be one of those options.
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21 sats \ 0 replies \ @02bcd3eeb0 23 Jun
It means nothing. Japanese people can (and do) just buy dollars or dollar assets. It's not Venezuela or Zimbabwe, they have full access to global markets.
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21 sats \ 0 replies \ @16d86e9daa 23 Jun
personally i think The yen's devaluation didn't impact crypto markets yet but on a deeper level—the falling yen is really about Japan's large debt burden, which forces the Bank of Japan to cap long-term government bond yields, preventing it from joining the global post-COVID tightening cycle. In effect, this transfers weak debt dynamics from the bond market to the currency
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21 sats \ 0 replies \ @TNStacker 23 Jun
I think people forget or ignorantly discount the effects from the 2011 earthquake and tsunami. Even people who live in earthquake zones can't fathom a 9.0 magnitude event with tsunami.
Hell, Fukushima Daiichi pretty much scared Europe off nuclear. One could argue European dependence on Russian gas was increased as a result.
The world felt that earthquake.
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21 sats \ 0 replies \ @Hamstr 23 Jun
They will do what they must
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