What is a crypto asset (virtual currency)?

                 

What is a crypto asset (virtual currency)?

"Cryptocurrency (virtual currency)" is a property value that can be exchanged on the Internet, and is defined in the "Act on Settlement of Funds" as having the following properties.

1. (1) It can be used for payment of payments to unspecified persons, and can be exchanged with legal tender (Japanese yen, US dollars, etc.).

2. (2) Electronically recorded and transferable

3. (3) Not legal tender or legal tender-denominated assets (prepaid cards, etc.)

Typical crypto assets include Bitcoin and Ethereum.

Cryptocurrency assets have attracted a great deal of attention as a mechanism for exchanging property values ​​without going through a third party such as a bank.

Generally, crypto-assets can be obtained and exchanged from businesses (cryptocurrency exchange companies) called "exchanges" or "exchanges". Cryptocurrency exchange business can only be carried out by businesses registered by the Financial Services Agency / Finance Bureau.

Cryptocurrencies are not fiat currencies issued by the state or its central bank. In addition, it should be noted that the price of cryptocurrency assets tends to fluctuate significantly due to various factors such as the supply and demand relationship of users because they do not have supporting assets.

Also, please note that many cases of cryptocurrency fraud have been reported. For details, please see "Please be careful about troubles related to cryptocurrency assets!" By the Financial Services Agency, Consumer Affairs Agency, and National Police Agency (you can see it from the "Reference" link below).

The main classification of crypto assets (virtual currency)

Cryptocurrencies (virtual currencies) can be broadly divided into two types. One is "Bitcoin (BTC)" and the other is "Altcoin". An altcoin is an abbreviation for the word Alternative Coin, which means cryptocurrency (virtual currency) other than Bitcoin (BTC). Typical brands of altcoin include "Ethereum (ETH)" and "Ripple (XRP)"

Bitcoin (BTC)

Bitcoin (BTC) is a representative brand of cryptocurrency (virtual currency), and as of December 3, 2021, it is the crypto asset (virtual currency) with the highest market capitalization. As a new payment system that does not require a central institution or an intermediary, it was developed based on a paper published by a person named "Satoshi Nakamoto" in 2008, and distribution started in 2009.

The maximum issuance of Bitcoin (BTC) is set at 21 million. Mining is required for new issuance, and mining is automatically adjusted to succeed about once every 10 minutes. In addition, miners who succeed in mining can get newly issued Bitcoin (BTC) as a mining reward. As of December 3, 2021, the mining reward is 6.25 BTC.