Asia Not Phased as Cryptocurrencies Plummet

in News by

Anyone following the news about cryptocurrencies will be aware that the market is extremely volatile at the moment – perhaps more than it has ever been before.

This means many things. First of all, crypto-miners are having to revise their strategy (and energy bill) when it comes to the feasibility of their mining gig.

Secondly, day-traders are losing both money and interest in the market, as trading Bitcoins and other currencies are no longer as profitable as it used to be.

Conversely, long-term investors are now losing their scepticism and are showing a renewed interest in cryptocurrencies as a long-term investment.

Overall, many once-promising Bitcoin millionaires are now left with a bleak outlook on an uncertain future as the market is seemingly all over the place.

But this only holds true for the West. In the East, cryptocurrencies are perhaps as strong as ever.

Eastern Promises

For companies like BitPay, who, despite the massive drop in cryptocurrency value of the last few month, have somehow managed to secure over $70 in funds, the East shows a lot of promise in terms of expansion.

As a matter of fact, Asia is BitPay’s fastest growing market.

Not only are Asian business thrilled by the prospect of being able to have their invoices paid in one day, as opposed to the long process of traditional banking systems, but Asian consumers are increasingly using Bitcoin to pay for goods and services.

On top of the fast transactions, Asian businesses trading internationally are also happy to see a reduction of transaction fees down to a meagre 1% – much less than would be the case with regular bank transfers.

From China to Japan

In China, the all-around versatile app WeChat has now launched WeChat Pay, which is essentially a QR code that can be used as payment in almost any restaurant or retailer.

In Japan, Bitcoin has been accepted as legal tender for over a year now, and Japanese banks are in the process of developing their very own cryptocurrency called J-Coin.

One of the reasons why investors and entrepreneurs alike see an opening in Asia is that credit cards are not being used as widely there as it is here in the West.

This means that there is ample opportunity to start spreading the use of cryptocurrencies as an alternative form of payment.

Challenges ahead

There are of course challenges to be dealt with as well as opportunities to be seized.

One of the challenges is the fluctuating value of Bitcoin and other cryptocurrencies. Although the Asian market seems more enthusiastic about the technology, they are, like any other markets, not immune to the volatile nature.

Another challenge is whether or not technological advancement can keep up with the demand for cryptocurrencies – if there’s only a few places to pay with Bitcoin, it will lose some of its appeal.

What do you think of the Asian approach to cryptocurrencies? Do you feel like the West could learn a thing or two about the Eastern mentality? And what about the challenges? Will Asian investors and entrepreneurs face the same issues as Western ones?

Leave your comments below!

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.