Survey: 14% Of Japan’s Young, Male Professionals Own Cryptos

Pratik Makadiya
  • A recently conducted survey shows Japan's young male workforce trends to invest in cryptocurrencies
  • An influx of Japanese investors was felt in the last quarter of 2017, when most cryptocurrencies hit all-time highs

According to a survey conducted by Japanese research institute Shin R25, a subsidiary of the publicly listed internet advertising company Cyber Agent, 14 percent of all young professionals in the Japan aged between 25-30 own cryptocurrency.

Japan is one of the most crypto friendly countries in the world, recognizing bitcoin as legal tender in April 2017. The nation is currently the biggest crypto market in the world, as according to CryptoCompare data the Japanese yen made up 52.8 percent of bitcoin’s trading volume in the last 24-hour period.

Crypto Investments

Shin R25 organized a countrywide survey to explore the percentage of virtual currency owners among employees in the 25-30 year old age group. The research organization used Macromill internet research to conduct the extensive survey.

The survey was conducted over the first quarter of 2018,  and 4,734 individuals participated in it. Out of those surveyed 14 percent admitted to have invested in cryptocurrencies, with  25 percent of all participants were new to investments. On the other hand, 72 percent of participants had experience investing.

Although cryptocurrencies are legal tender in Japan, 92 percent of respondents revealed they bought them as an investment, hoping prices would surge so they could make a profit. Moreover, 37.4 percent invested “for the time being because it is a trend.” About 20 percent did so thanks to an acquaintance’s recommendation.

An Influx Of Japanese Investors

2017 was a great year for the crypto space, as various cryptocurrencies hit new all-time highs during the year’s last quarter. Unsurprisingly, many Japanese investors entered the market at the time.

The survey notes that 79 percent of respondents entered the crypto space in 2017. 25 percent of Japanese professionals who had never invested in virtual currencies did so in Q4 2017. About 15 percent of respondents started investing in early 2018, when cryptocurrencies started plummeting.

Participants revealed that they have invested less in digital currencies because of their volatile nature. Over one-third of them revealed to have invested less than $500, while only a few invested large sums.

Even with the crypto market’s wild price swings, 50 percent of participants intend to continue investing in cryptocurrencies, while 35 percent plan on stopping.

Bank of England Governor Recommends Replacing Dollar With 'Libra-Like' Digital Currency

  • BOE Governor Mark Carney proposed replacing the US dollar with a libra-like digital currency as the global reserve. 
  • Called for a dramatic shift in policy to address the changing economic landscape. 

Bank of England Governor Mark Carney has made a radical recommendation for central banks that the U.S. dollar be replaced with a Libra-like digital reserve currency. 

Replacing the Dollar

Speaking at the Federal Reserve’s annual Jackson Hole Symposium on Aug. 23, Carney called for a dramatic shift in global monetary policy that would see central banks taking a greater interest in digital currencies such as Facebook’s forthcoming libra. 

The BOE Governor’s proposal would replace the U.S. dollar as the world’s reserve currency with a digital alternative. While it was unclear if Carney was actually suggesting that libra could be used to fill the void, his intent was to spur interest in a fiat alternative for global reserves. 

Carney argued that proactively replacing the dollar with a digital coin substitute would be preferable to allowing another national currency usurp its status--such as the Chinese renminbi. 

He pointed to the global economic uncertainty in part being generated by deteriorating U.S. trade relations, 

The combination of heightened economic policy uncertainty, outright protectionism and concerns that further, negative shocks could not be adequately offset because of limited policy space is exacerbating the disinflationary bias in the global economy.

He continued, 

When change comes, it shouldn’t be to swap one currency hegemon for another. Any unipolar system is unsuited to a multi-polar world. We would do well to think through every opportunity, including those presented by new technologies, to create a more balanced and effective system.

Cryptocurrencies Gaining Prominence

The introduction of a non-fiat currency could have the effect of devaluing the dollar, and most national currencies, which could be one way for central banks to introduce inflation to erode away the record levels of debt accumulating globally. 

Some have speculated that an alternative asset such as gold could be used as an intermediate. However Carney, who announced several months ago he would be stepping down as Governor of the BOE, has shown a route to fiat alternatives which includes the creation of digital currencies.

He lauded the technology for its efficiency in payments and cross-border transactions, 

The most high profile of these has been Libra – a new payments infrastructure based on an international stablecoin fully backed by reserve assets in a basket of currencies including the US dollar, the euro, and sterling. It could be exchanged between users on messaging platforms and with participating retailers.

While Carney’s suggestion to replace the U.S. dollar is one of the most radical proposals yet, it does give insight into the global trend in central banks to pursue digital currencies as an alternative to their outdated fiat counterparts.