Rise in bitcoin's value could boost Japan's GDP by 0.3%
Japan's one million bitcoin holders could pour up to JPY96bn ($851m) into the country's economy, adding 0.3% to GDP, according to Nomura analysts Yoshiyuki Suimon and Kazuki Miyamoto. The duo forecasted that the sharp rise in bitcoin prices last year will spur an increase in economic activity as holders of the cryptocurrency feel richer and spend more. About 40% of all bitcoin trades are in yen, suggesting the huge increase in the asset's value will particularly affect Japan. To date, many economists and analysts have believed bitcoin's rise in value will have little effect on the overall economy.
Investors should be wary of the stock market's ongoing rally because it's reminiscent of the time that led up to the 2008 financial crisis, Bob Michele said.