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The number one reason why I am a Bitcoin fan is because of the Cantillon effect. Richard Cantillon was an Irish-French economist in the 18th century writing in the 1750s. He described what is now described as the Cantillon effect; when you print money, you debase the purchasing power of the units that are currently existing. Hence, if a person is saving up rupees or dollars, and she is putting it under her mattress every day, there will not be much value. As long as the central bank in Mumbai is printing, her hard-earned savings are being depreciated, whether she wants that or not. What the Cantillon effect discusses is that, if all the money in the economy was equally debased at the same time, that might be fairer, and this is the number one reason to use bitcoin.

I took over the Bitcoin Association meet-up in 2012. During the 2013 bubble period, the community grew rapidly due to the price explosion. Bitcoin transformed into this being on a world stage for the first time, and that was quite a ride. The community and the Hong Kong ecosystem transformed massively due to this growing new industry. If we just take a minute and rewind 2012~13, we can see how it has developed till today.

Sale of Crypto Assets. 1BTC purchased for 500,000 Yen and sold for 1 million Yen = 500,00Yen profit. Purchasing Goods with Crypto Assets. 1BTC purchased at a rate of 1BTC=500,000 Yen, and buying a TV for 1 million Yen when the rate 1BTC is 1 million Yen, means a profit of 500,000 Yen has been generated. Exchanges between Crypto Assets. Purchasing 1 BTC for 500,000Yen, and exchange it for 50ETH when the rate of 1ETH is 20,000Yen (In total 1 million Yen) = 500,000 Yen profit generated. Crypto Assets Split (Forking). The purchasing cost of the newly acquired crypto asset shall be 0 Yen at the time of purchase. Profit generation will incur at the time of sale or use. Crypto Asset Mining etc., Earnings will be generated at the market value at the time of acquisition of crypto assets acquired through mining, and this amount shall be the cost of acquisition. In case you sold the acquired crypto assets through mining afterwards, profit or loss will be generated by the balance of price of the crypto assets value at time of sale and the cost of acquisition when the sale is made.