Nomura Analysts Reveal Bitcoin Contributes 0.3% to Japan’s GDP
Japanese financial firm giant Nomura reveals that an additional 0.3% to Japan’s GDP could be attributed to Bitcoin.
In a news report published by the Business Insider France on New Year’s Day, financial analysts Kazuki Miyamoto and Yoshiyuki Suimon of Nomura reveal that the ‘wealth effect’ on Japanese Bitcoin traders can likely boost consumer spending. This can then, in turn, produce a measurable impact on the country’s GDP.
The said “wealth effect”, in economics, is defined as the measurable boost in the economic activity when investors tend to feel more secure about their money prompting them to spend more.
“Generally speaking, rises in asset values often result in a rise in consumer spending too, known as the wealth effect….”
Bitcoin is a massive phenomenon in Japan and it is one of the countries that have embraced the Bitcoin as a legitimate currency.
About 50% of the global trade is in Yen, and this is more than the entire US Dollar share.The analysts also stressed out that the scale of this increase in assets cannot be ignored.
According to the Nomura analysts, there are about a million Japanese people that own roughly 3.7 million Bitcoin. This could possibly grow as many companies are looking into the possibility of paying a part of their employees’ salaries in cryptocurrency.
GMO Internet, a Japanese company, will embark on this path starting February 2018.
The optimism of the GDP growth highly contrasts the recent comments made by Dennis Gartman who even predicted that Bitcoin will eventually trade below 5,000 Dollars. Gold mining CEO Sean Boyd also shared the same sentiment as Gartman’s, expressing that people will eventually return to gold trading.