Anika Begay
Jeff Park, head of Alpha strategies at Bitwise, which runs the fourth largest spot Bitcoin ETF in the US with $2.039 trillion in assets under management, presented a bullish outlook on Bitcoin via X. His analysis links historical economic decisions and current global financial conditions, which he said, “are incredibly powerful” for Bitcoin.
Why Japan Can Benefit Significantly From Bitcoin
Park contrasts the 2024 economic crisis with the 2008 and 2020 crises. He notes that while previous crises had clear culprits or were due to extraordinary circumstances, the current situation involves complex international dynamics, influenced primarily by Japan’s economic policies. Park explains, “This current spiral of 2024 is apparently driven by Japan, which from the perspective of the United States requires an international cooperative environment in addition to its own domestic economic desires.”
He then delves into the historical context of the 1985 Plaza Accord, a pivotal but often overlooked event that reshaped global economic leadership by devaluing the dollar to curb Japan’s economic rise. Park says, “Contrary to popular Western myth, Japan did not mysteriously and accidentally enter the ‘lost decades’ of stagnation on its own.” He describes the agreement as a strategic move by the United States to maintain economic dominance, which subsequently led to Japan’s long-term economic stagnation and initiated the so-called Carry Trade.
Park criticizes the Federal Reserve’s current approach, noting that it is not just focused on domestic goals like unemployment and price stability, but is also deeply intertwined with global economic conditions. He argues that “the United States can’t just cut rates on its own without offending the rest of the world. It has real ripple effects on a country like Japan.”
The researcher further criticizes modern financial architecture, which he believes has been characterized by decades of “artificial suppression and theft,” particularly by Japan and the resource-poor younger generations. He says, “This is at the very core of modern financial architecture, with thirty years of artificial suppression suppressed and theft, by the young, the resource-poor younger generations, and I say this here, from Japan.”
Amid this criticism, Park champions Bitcoin as a critical tool for financial inclusion. He points out that while discussions often focus on emerging markets like Argentina and India, developed countries like Japan have much to gain from Bitcoin.
Park argues that Bitcoin offers a unique opportunity for Japan to decouple its monetary policy from the influence of the US dollar, addressing its structural leadership and demographic challenges. Concluding his analysis, Park shares his long-term bullish stance on Bitcoin, predicting a significant revaluation in the wake of the current financial crisis.
He elaborates, “Not today, and probably not tomorrow, but still much sooner than I expected in my lifetime. This financial crisis is the mother crisis, the original sin, and it is global, generational, geopolitical. Even without a global implosion, the narrative will come out and people will wake up and understand why BTC is valuable. Once the selling pressure ends, from the ashes will emerge the most glorious phoenix the modern financial world has ever known, and we will rise, rise, rise.”
At press time, BTC was trading at $55,066.
Featured image created with DALL.E, chart from TradingView.com
