Chief Planning Director of Japan’s take on Bitcoin [BTC] and other cryptocurrencies

Masashi Kuramoto, Chief Planning Director of Japan’s Financial Public Relations Central Committee shared his opinion on cryptocurrencies, which was recently published by Japan’s Central Bank.

According to the summary, Masashi has shared his views to help the public understand the concept of virtual currency and discusses the profit, future use, and precautions allied to cryptocurrencies.

Masashi has declined the similarity of cryptocurrency with traditional currency as no financial institution issues cryptocurrency, making it is different from ‘money’ that is used by people in general. They stated that people have no confidence in it because of the same.

When asked about cryptocurrencies profit, he says:

“The rate of increase is bigger than the past asset price bubble, such as the rise in Japanese stock price in the latter half of the 1980s, some of which have reached hundreds of times in one year”

He adds:

“There is a possibility that if you bought a virtual currency before 2017 it would have been a big profit. However, it does not mean that the virtual currency makes sure profit. In fact, in 2018, a lot of virtual currencies are falling”.

When another question regarding the ban of cryptocurrency due to the lack of knowledge was asked, Masashi replied saying that cryptocurrencies were designed with a purpose to transfer money at a low cost and support socially significant activities.

On crypto risks, Central Bank suggested some measures to keep in mind while investing in them. They say:

“In the future, the technology that supports the mechanism of the virtual currency will continue to change further, and as a result, we can not deny the possibility of creating a novel mechanism in the form of replacing the current virtual currency. Therefore, the price of the virtual currency does not necessarily rise, there is a possibility that one day suddenly it will be worthless at all.”

Bank further added:

“For that reason, it is necessary to pay sufficient attention to whether data management is properly carried out, and whether the exchange trader can be trusted when trading or storing by using a virtual currency exchange trader. In other words, it can be said that the virtual currency has a possibility of price drop and that some expertise is required for ownership.”

Virtual currency theft is another horror picture in the market and to this the Bank wants investors to be wary of risks as it said:

“Japan is known worldwide as a country where virtual currency trading is popular, there is the possibility that bad guys around the world will look at the virtual currency traded in Japan and get various skills”.

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