Category: 5- iFires

Japanese Stores to Suspend Bitcoin Payments Over Fear of Split

Thusands of Japanese Retail stores will be suspending bitcoin payments after August 1st.  The reasons given have to do with a fear of Bitcoin instability.  Some stores are choosing to switch to a different cryptocoin popular in Japan, monacoin.  One of the main reasons given was fear of a potential split in bitcoin.  

The success of bitcoin is also exposing some of the potential vulnerabilities of bitcoin, and cryptocurrency in general, fear *be it real or imagined) of instability.  Until such time as cryptocurrencies can produce a history of stability, this is a problem that will continue to affect the market.  This is not to say that cryptocurrency faces an existential threat from this fear of instability (real or imagined), but rather than other factors must (and, I believe, will) come to play that make the reward worth the risk.  

The gamble from businesses accepting cryptocurrency is that the value of the exchange may so fluctate that it will leave them unable to replacce inventory and meet payroll.  The gamble from customers is that the purchase of a product or service today could mean loss of potential gains in values had they held on to the currency.  I believe the market for cryptocurrency is not going away anytime soon and that methods of producing more predictabilty in the market will arise in unexpected ways, because the market wants cryptocurrnecy, so the market will figure out a way to alleviate the risks on both the buyer and seller’s part.

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