Bitcoin has just set a historic record against the yen, the currency of Japan. This is also the case in nearly twenty other countries.
Big Bitcoin in Japan
It’s done. Bitcoin is already at an all-time high for the 125 million Japanese. One bitcoin is now worth nearly 7.8 million yen.
The cause is the depreciation of the Japanese currency. At the time of the previous record, a dollar was worth 104 yen compared to 150 today. That’s a depreciation of almost 25% in just two years.
This 25% is more or less what separates bitcoin from its record against the dollar. Which makes sense. This difference is linked to the evolution of the exchange rate. And since Japan does not have capital controls, there are no arbitrage opportunities.
The land of the rising sun is not the only one. This is also the case for Argentina, Turkey, Iran, Nigeria, Egypt, Congo-Kinshasa, Lebanon, Syria, Ghana, Laos, Myanmar, Ethiopia, Sierra Leone, Sudan, Pakistan, Suriname and Venezuela.
These countries represent a population of almost 1.4 billion people where FOMO (Fear of Missing out) must probably be more acute than in the rest of the world.
All of these countries are facing double-digit inflation rates. Because of the war (Lebanon, Syria), poor harvests (Argentina), American sanctions (Venezuela, Syria, Iran, Turkey, Myanmar), the drop in oil production (Nigeria), the rise in prices foodstuffs (Egypt, Sierra Leone), etc.
Here are the annual inflation rates:
Argentina: 254%
Lebanon: 192%
Venezuela: 107%
Syria: 84%
Türkiye: 64%
Sudan: 63%
Sierra Leone: 52%
Congo: 42%
Iran: 38%
Malawi: 34%
Cuba: 31%
Nigeria: 29%
Egypt: 29%
Ethiopia: 28%
Myanmar: 28%
Pakistan: 28%
Laos: 24%
Ghana: 23%
So many countries where capital controls exist to prevent a fall in the exchange rate and further worsen inflation. In other words, it is now very difficult to easily obtain bitcoins there.
This is why all nations suffering from a trade deficit should attract bitcoin miners. This avoids having to buy them abroad, in turn depressing the exchange rate.
Ethiopia seems to have understood this:
Despite the ban on exchanges (exchange controls), Ethiopia has been welcoming bitcoin miners since 2022. Increasingly close ties with China have encouraged Chinese miners to set up to take advantage of its energy surpluses. hydroelectric.
The planets are aligning for Bitcoin…
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