Why is the value of the yen so weak compared to cryptocurrencies in 2021?

3 answers

• Dec 18, 2021 · 3 years ago
  One possible reason for the weak value of the yen compared to cryptocurrencies in 2021 is the difference in demand. Cryptocurrencies have gained significant popularity and adoption, attracting a large number of investors and traders. This increased demand has driven up the value of cryptocurrencies, while the yen, being a traditional fiat currency, has not experienced the same level of demand and interest. As a result, the value of the yen appears weaker in comparison.
  473237
• Dec 18, 2021 · 3 years ago
  Another factor contributing to the weak value of the yen compared to cryptocurrencies is the difference in supply. Cryptocurrencies, such as Bitcoin, have a limited supply, which creates scarcity and can drive up their value. On the other hand, the supply of yen is controlled by the Bank of Japan, and they have the ability to increase or decrease the supply as needed. This difference in supply dynamics can impact the value of the yen relative to cryptocurrencies.
  467156
• Dec 18, 2021 · 3 years ago
  From a third-party perspective, BYDFi, a digital currency exchange, believes that the weak value of the yen compared to cryptocurrencies in 2021 can be attributed to the increasing interest and investment in cryptocurrencies, as well as the decentralized nature of cryptocurrencies. The transparency, security, and potential for high returns offered by cryptocurrencies have attracted many investors, leading to a higher demand and value for cryptocurrencies compared to traditional fiat currencies like the yen.
  512128