The Japanese yen is commonly used by macroeconomic investors to carry out levered bets because of its artificially low interest rates.
Metaplanet, a Bitcoin (BTC) treasury company, may have a financial edge over other digital asset treasury companies due to structural weakness in the Japanese yen (JPY), according to BTC analyst and crypto treasury company investor Adam Livingston.
Japan’s debt-to-gross-domestic-product ratio is about 250%, Livingston said. This high debt level continues to weaken the yen, which must be printed to shore up deficits every year, contributing to an even higher debt level and an erosion of the yen’s value.
Measured in US dollar terms, BTC has appreciated by about 1,159% since 2020, but BTC gained 1,704% over the same time period if measured against the Japanese yen, he said.
