Cryptocurrency: Japan's Lost Generation Is An Example Of The Future

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Japan is a leader in many ways, and a lesson for us all.

In the 1980s, it was at the peak of its success story. Just 4 decades after enduring the impact of two atomic bombs, which forced the surrender in WW2, the country was the leading story of the time. With an economy on fire, the country was a major player on the world stage.

This led Japanese business leaders to be some of the richest in the world. At the core of this was real estate. They were able to amass vast holdings, not only in Japan, but throughout the rest of the world.

Sadly, this all came to an abrupt end. When recession hit, it wiped out trillions of dollars of value. The Japanese took it extra hard.


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In addition to normal economic conditions, the Japanese were faced with another issue: an aging population. This put an added burden on the country that it has yet to recover from.

When an economy is filled with aging people, it becomes extremely deflationary. This is where the Japanese found themselves for the past two decades. While this might seem like a great thing for workers, since there are less people vying for jobs, the reality is much different than the theory.

Here is an article that is a long read but details the situation very well.

https://www.bloomberg.com/features/2020-japan-lost-generation/

Ultimately, Japan suffered through a lost generation of younger people in terms of their job prospects. As the article details, there is a large percentage of people in their 30s and 40s still living at home with parents, ones who were never able to secure solid employment.

This is a situation that is bound to play out around the world. With much of the developed world having a birth rate that is approaching less than replacement, we will see economies struggle. Older people tend to cost the system more while not being able to contribute in terms of productivity. It is no secret that older people tend to curtail their spending as they head towards retirement.

Overall, there is an enormous economic impact upon a nation.

With countries like Russia, China, and most of Western Europe facing increasing ages of their population, we are going to see a major shift in their economies. This is likely to start the process of contraction, similar to what Japan experienced. In fact, one could make the case that it already is in progress across the Eurozone.

What does this mean for workers? Most likely, the young people in those countries are going to find getting jobs very difficult. This is a process that does not last just a recession but, as we saw, can go on for decades.

Of course, we can look at the actions of the Japanese central bank for cues. Over the past 20 years, it tried to print its way out of the deflationary spiral. They are employing Keynesian playbook 101, trying to incite demand by inflating the money supply and cause some FOMO. It hasn't worked.

The ECB finds itself in the same situation. Their growth rate over the last decades was anemic. With the situation due to COVID-19, it has gotten much worse. This is causing the ECB to devise more ways to ease. As the Japanese showed, none of it will work.


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This is where cryptocurrency enters the picture. As this industry expands and grows, people are being provided with more options. We already see individuals in countries that never offered much economic opportunity finding some cashflow by engaging in crypto based activities. This will only grow as more people become aware of what is taking place.

Technology and demographics are wreaking havoc with the traditional economic structures around the world. We are in an entirely new arena as compared to where we were just a couple decades ago.

Thus, the old rules do not apply. Many still want to look through the lens of how things were in the past, believing that it offers the solutions for today. Sadly, this is mistaken. The actions by governments and central banks over the last 40 years, especially in the developed countries, show they are willing to buy into things like it is 1976.

At present, according to estimates, there are 100 million people involved in cryptocurrency. This is a solid foundation upon which to build from. If we can find an even greater accelerated growth rate, things could really get interesting for hundreds of millions of people around the world.

In totality, the present economy is not working well for most around the world. While the wealth of the planet has exploded, mostly due to technological advancement, many have not seen the direct financial benefits themselves. There is still a ton of poverty in the world as well as millions of people in developed countries "falling through the cracks".

There needs to be something in place to ensure we do not see "lost generations" all over the world. Governments and central banks think that printing more money will lead to expanded economic growth. It will not. We need to find something new that provides people with opportunities.

Hopefully, crypto will continue to expand and offer people those opportunities.


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When it comes to the ECB printing large quantities of QE money I say bring it on! The so-called asset based cryptocurrencies such as BTC are essentially receptacles through which the deluge of QE will flow trough. When central banks go on a buying spree, stock prices will go up and we know some of that money will find its way to crypto. Maybe not so much gold because gold is a thing mainly old people like to hold. When boomers kick the bucket their holdings will be in the hands of millenials who won't touch gold but buy crypto instead.

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That is true.

Also a lot of the money end up flowing into technology, that is why the NASDAQ keeps going to new heights, even more than the DOW and S&P.

It is the beneficiary of all that money printing.

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Absolutely true. I think NASDAQ will benefit mainly because the largest tech companies have benefited from the pandemic. Amazon is making a killing while brick and mortar's decline has accelerated. Office workers are increasingly working from home, which benefits telecommunications and software companies.

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Let me know if you visit, I’ll show you around

Funny how you can’t say the world “bubble” in japan without people thinking of the 80s and 90s.

I doubt Japan will be leading the way with crypto but they won’t be far behind either. Just wait until a few more popular companies buy bitcoin. They’ll start paying attention then.

In spite of a down period, Japan is still technologically advanced. I agree with you, it would not surprise me to see that country as one of the early adopters, especially compared to the other developed countries in the West.

Japan will be on board just like S. Korea is getting involved.

The US and Eurozone, well they are still trying to save their banker run systems.

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Japanese are pretty hard working and additionally use new tech, not unlike other curries were there old tech from 90s still in use
japan old forks are suffering and there birth rate Is low i say f**k some more to give birth more
japans tolite are so modern

The Japanese certainly have a strong work ethic and had to turn to technology to make up for shortfalls in certain industries. This goes to show that not everyone can be taught to code or even to get involved in nursing or home healthcare.

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haha i also want to be a geek like them

(100 million people involved in cryptocurrency) there are a lot of people, and we are part of this guy's we have the future in our hands.
Well this problem with old people in world are in every country, in my country guys from 15 to 30 years old are caller ni ni or in English say no no no work no study do not make nothing, and parts of this are because their parents give to they a lot, a house a food and other things, well we grown with other thinks and mentality we need to work hard for get the things.

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Immigration and emigration may bring a short term solution
to this debacle.
Crypto may be the other side engine in the process.

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For countries like the United States, immigration does negate the aging of its core population.

Japan and China will not likely benefit since they tend to be closed societies with an ethnocentric view of the world. Thus, they are not welcoming of too many foreigners. China can handle them better from a physical standpoint since they have land. Japan has a space problem already.

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If there is a country in this world that knows to rebuild and do things all over again with the speed of light that is Japan. Japan might be the epicenter of technology and innovation, when they put their mind to it they make it happen. This amazed me every time when I saw them recover after disasters.

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Nice post

Japan still has the coolest tech around. It’s amazing what happens when monetary policy is out of sync with the general populace. Crypto will fix this.

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At present, according to estimates, there are 100 million people involved in cryptocurrency.

Wow thats great. Gradually it will rise more as its financial value and the engagements. I joined this platform on the covid-19 situation when there was a huge financial crisis everywhere. Its a great place and i see a lot positive outcomes to come in the near future.

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 last year 

That lost generation article was one of the better reads I've come across this week and I'm glad you are talking about it.

I never knew there was an entire disillusioned age group in Japan. It did make me a bit concerned about what would happen to the "lol millennials" as they get older. I had that notion of extreme violence given the way the US is with arms.

Then, I look at myself. I'm somehow better off than most people described in that article.

Hopefully, crypto will actually make a difference in people's lives. Otherwise, there's a powder keg ready to explode.

It is pretty interesting that you were talking about Japan's lost generation. After the bubble burst and a lot of these Japanese companies stopped hiring and this put tremendous pressure on the new graduates as they struggled to find jobs.

Being unsuccessful and the pressure of living in their parents homes and constantly being called a failure for not being able to get a job, their own house and be on their own at their age has affected their mental stability and often a lot turn in recluses, the modern day hermits who use the internet as the only link to the outside world.

Crypto in a way has helped a lot of these individuals and I remember that it was crypto based activities that helped me overcome a lot of my social anxieties before and got me outside.

There is hope yet.

Japan is an exquisite example of a country that knows how to rise quickly whenever necessary.

Seems to me that the "elephant in the room" few people are willing to look at is the extent to which AI and automation will be replacing human jobs over the next 2-3 decades. Yes, you are absolutely right that there are "lost" generations who will struggle to find jobs, but beyond that the entire face of working is going to be changing, as we reach a point where we simply don't need as many able-bodied workers to do things, as there are people. And yet we all have to somehow be able to "get funding" so we can acquire the goods and services being produced (by machines) for us. It's an equation it seems like few have an answer to, and conventional economists are not willing to look at because it renders their entire paradigm invalid.

=^..^=

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Governments and central banks think that printing more money will lead to expanded economic growth. It will not. We need to find something new that provides people with opportunities.

And those governments and central banks will do anything they can to try and stop the digital currencies from taking hold. It means they lose power over us, and without that power, they lose control.

crypto will continue to expand and offer people those opportunities

Crypto is the internet 2.0 and it's here to solve most of the current and future problem of our world