Perceptions and sentiments regarding stocks and cryptos vary from place to place, often depending on a number of local factors. The same has been highlighted in a recent research report by Bitflyer.
Likewise, market sentiment among American investors has been observed to be very bullish, strengthening the argument that the recent price increase was driven mainly by US-based investors.
It should be noted that the Japanese crypto exchange is in a better position than some to juxtapose the sentiments of US-based and Japan-based investors as they exist in both countries. Interestingly, investors from both regions have extremely opposing views when it comes to their perceptions of cryptocurrencies.
The survey mentioned above revealed that 76% of all respondents who heard about cryptocurrencies in the USA positively perceive these assets as an investment. On the contrary, the opposite happened in Japan, and only 22% of those surveyed had a positive view of cryptocurrencies.
Perhaps it is understandable that Japanese investors seem cautious about investing in cryptocurrencies due to the Mt.Gox exchange being hacked.
Probability of stealing
“There’s a chance someone steals it,” one Japan-based investor explained the reasons for the negative outlook on the field.
Despite the downward sentiment among investors, Japan remains one of the most important markets in the world, with one of the most structured regulatory frameworks globally.
Conversely, the state of regulations in the US is not entirely favorable right now – a fact highlighted in a recent interview by BitFlyer US COO Joel Edgerton. According to Edgerton, it is extremely difficult to use Bitcoin as a payment tool, as the IRS identifies Bitcoin as an asset.
The BitFlyer executive suggested that because of this definition, people will have to factor in capital gains taxes for every transaction they make in Bitcoin. Therefore, for now, Bitcoin may be limited to high value purchases only.
However, this has clearly not prevented US-based investors from significantly increasing their crypto assets last year.