How to obtain Bitcoin? (Episode 8)

Serialized Column：Starting from Zero: Virtual Currency Trading：Episode 8

You can obtain Bitcoin by buying, receiving, or mining it.For mining, please see “Episode 4/ Bitcoin is newly issued through mining”.

Buying Bitcoin to Obtain It

If there is someone nearby who holds Bitcoin, you can negotiate directly to buy, but initially it is better to useBitcoin exchanges where you can purchase from people who already have Bitcoin.

There are several exchanges in Japan as well. It might be comforting if they are officially licensed by the Financial Services Agency, like FX brokers, but as of April 21, 2016, before related legislation passed, such exchanges do not yet exist.

However, if the exchange is a member of the JBA / Japan Blockchain Association (formerly JADA) and has been influential in pushing for regulatory reforms, it may quickly obtain approval from the Financial Services Agency after the bill passes, so you can start using it now.

However, no matter how safe an exchange claims to be or how closely it is monitored by the Financial Services Agency,investment is a personal responsibility, which is the same as Forex. A false sense of consumer protection may be gained, but remember that you are the one who must protect your own assets!

bitFlyer (BitFlyer)

An exchange operated by BitFlyer, Inc., with representative director Mr. Kano, who is the representative director of JBA / Japan Blockchain Association (formerly JADA).

Major companies like GMO and Recruit are shareholders. It is gaining momentum with engaging content for users. Recently, services allowing purchases with Bitcoin have appeared. It is also said that you can list as a seller.

“bitFlyer FX” offers leveraged trading up to 5x.

https://bitflyer.jp/ja/

Deals in Bitcoin and Ethereum.

Coincheck (Coincheck)

A exchange operated by Reservoirs Co., Ltd. in Japan.

The management team is young and expanding activities such as developing a smartphone wallet app, offering donation services, and promoting Bitcoin payments at real stores.

After the Kumamoto earthquake, they quickly launched a Bitcoin donation project for disaster victims, raising 34 BTC (about 1.6 million yen) with 950 supporters as of April 21.

https://coincheck.jp/

Handles Bitcoin and Ethereum, among others.

Zaif

This is not part of the JBA butBCCC (organizational power perhaps greater than JBA) affiliated exchange. It was effectively Japan’s first exchange, attracting a core fan base and maintaining high popularity. It also supports trading of Japan’s first cryptocurrency “Monacoin.”

It gives the impression of being a trustworthy exchange that “Japan’s Bitcoineers” will be pleased with.

http://zaif.jp/

Deals in Bitcoin and Monacoin.

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That was a brief introduction of four exchanges.

I actually opened accounts and traded at all exchanges. As a result,

in terms of functionality and services: bitFlyer → Zaif → Coincheck → Kraken

in terms of familiarity and trust: Coincheck → Zaif → bitFlyer → Kraken

These are the impressions. Please use as reference!

How Much Is the Bitcoin Price?

Prices fluctuate every day and every hour, like exchange rates.

Bitcoin initially had no value, but as of April 21, 2016, around 4,7000 yen per 1 BTC, with a record high of 1,090 USD (which would be about 123,170 yen if 1 USD = 113 yen).

Among experts, many believe that 1 BTC could eventually be worth 1 million to over 10 million yen.

The Government Recognizes Bitcoin as Currency

On March 4, 2016, the government finalized the first regulatory bill regarding virtual currencies, registering cryptocurrency exchanges and subjecting them to strict supervision by the Financial Services Agency.

Finance Minister Taro Aso stated, “We will take regulatory measures to protect users and prevent misuse.”

The new regulations include,

● External audits by certified public accountants
● Mandatory minimum capital
● Segregated management separating customer and company assets

These provisions are laid out.

When Mt. Gox collapsed, Japan’s Bitcoin and virtual currencies were in a “lawless” state, but with regulation advancing, it is expected that more companies and financial institutions will handle Bitcoin, creating a safer environment for individuals to buy, sell, or receive Bitcoin with more confidence.

However, there is also concern that overly strict regulation could undermine the intrinsic value of cryptocurrencies.

Summary

The fastest way to obtain Bitcoin for the first time is to open an account at an exchange!