The value of digital currencies, such as Bitcoin, began to crash since December of last year. It was reported that certain government bans on cryptocurrency exchanges was the cause. As an active member of FJMN, I began to consider what the value of Bitcoin is actually based on.
To begin with, I considered that the banknotes and bank account balances that we currently use are essentially virtual. For the banknote, the value of its stated amount is what a country has assigned to it. It is the country’s credit that deems a currency to be valid. Without the credit of the country, our banknotes are just printed by someone and our bank account balances just numbers.
On the other hand, it’s thought that Bitcoin is different from traditional currency in that its trustee is ambiguous. In other words, the fact that the enormous backing behind the Bitcoin is unseen is why it both soars and crashes. Bitcoin is monitored by everyone through the Internet, and a blockchain technology application secures reliability and safety. Thus, I considered that Bitcoin, which is monitored by the Bitcoin users throughout the world, collects a mutual credit or trust in order to establish its value.
In other words, similar to our FJMN activities, Bitcoin is in the process of building the confidence of people throughout the world. Like Bitcoin, FJMN is collecting the trust of all of our supporters in order to comprise our activities. Compared to when it was first established 5 years go, we are progressing and the base of our activities is expanding, thanks to the cooperation of many more companies and individuals. Even last year, we could preserve our activities precisely because we had the trust our supporters and could depend on you all. This year, as well, in response to your trust, we would like to further develop, even more than Bitcoin.
by Toake Kazuhide
(translated by Joanna Nishimoto)
