13th Beyond The Price
CoinPost Global published the 13th “GM Radio: Beyond The Price” on the 13th, and after working at financial giant Goldman Sachs and crypto asset (virtual currency) media Blockworks, he became independent and is currently the podcast “Across Weston Nakamura, who distributes “The Spread,” is participating.
According to the official website, Nakamura’s podcast examines and critiques the global market. The official website states that it is distributed from Asia, but the address that Mr. Nakamura has set for X is Tokyo.
The themes covered by Across The Spread include macroeconomics and the stock market. During an appearance on Beyond The Price, Nakamura explained that the podcast “conveys information about Asia to Western investors.”
The title of this broadcast is “Bitcoin (BTC), the Bank of Japan, and the importance of macros.” You can listen to Mr. Nakamura’s podcast (in English) below, but here we will introduce the key points of the broadcast.
We asked Nakamura to explain why the traditional financial industry should pay attention to Bitcoin. One reason, he said, is “diversification.”
He argues that a single financial system called legal currency is not sufficient for diversification when making investments and deposits, and argues that we should focus on Bitcoin, which is a parallel system. This could serve as a workaround in the unlikely event that the existing system collapses.
“We are witnessing the birth of a new asset class, and we should allocate some money to it.”
In Nakamura’s opinion, institutional investors still think the market size of Bitcoin is small. However, he said institutional investors who are aware of the value are entering the cryptocurrency market.
On the other hand, he pointed out that the government is beginning to feel threatened by Bitcoin. “Bitcoin’s characteristics are most evident not when inflation rises, but when a country defaults,” he said.
Furthermore, Mr. Nakamura says that he owns Bitcoin, but the reason for this is not because Bitcoin has the potential to replace the conventional mechanism, but because the conventional mechanism will collapse on its own and when that happens. He says that’s because Bitcoin is one of the few things that will survive.
Characteristics as a safe asset
It was in 2020 that Mr. Nakamura allocated a large amount of his funds to Bitcoin. The reason for this is that he noticed a correlation between Turkey’s legal currency, the Lira, and Bitcoin.
The financial market in 2020 crashed due to the corona shock in February. After that, the value of many assets and currencies began to rise, with the exception of the Turkish lira and US dollar-denominated Bitcoin prices, he said.
Nakamura believes that Turkey was an early adopter of Bitcoin, and as the value of the Turkish lira declined, people in the country took refuge in the US dollar, gold, and Bitcoin.
connection:Turkey’s inflation index reaches its highest level in 24 years, Bitcoin P2P transaction volume is on the rise
He also pointed out that similar things are happening in Israel, which continues to be at war after being attacked by the Islamic group Hamas. He suggested that many people in Israel hold assets in Bitcoin because their IT technology is already advanced and physical gold must be transported.
He also said that if the value of the yen were to drop in Japan, Japanese people would also flee their assets to Bitcoin, saying that he could not imagine how much the price would rise in that case.
value of yen
Mr. Nakamura also talked about the yen this time. Recently, the US has increased its policy interest rate until July 2023, while the Bank of Japan has maintained monetary easing. Currencies in countries with high interest rates can earn more investment profits, so the trend of selling yen and buying dollars has continued, and the yen’s depreciation trend continues even today. Mr. Nakamura pointed out that for this reason, the dollar-yen exchange rate tends to move in conjunction with the US 10-year bond.
He explained that while it is hard to be aware of the weak yen when you are in Japan, the impact is noticeable when you travel overseas or engage in tourism. On the other hand, due to the weak yen, utility bills are rising as Japan imports energy, and prices are rising as Japan imports food, he said.
Mr. Nakamura argues that it is dangerous to hold all of your savings in fiat currency, as the value of the yen is declining, and emphasizes the importance of investment.
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