Bitcoin is

## Not just a coin

Cryptocurrencies, including Bitcoin, are generally known as "virtual currencies." However, their true nature goes beyond the confines of mere coins.

According to Arkham Intelligence, in March 2025, the government of the Kingdom of Bhutan transferred 600 BTC to an unknown wallet. This transfer of 600 BTC could potentially support improvements in public servant salaries and healthcare provision, as indicated by Prime Minister Tshering Tobgay.

This is not the first time. In 2023, the Bhutanese government raised civil servants' salaries by 50%. The source of the funds was revenue from bitcoin mining.

The Kingdom of Bhutan, which upholds the national philosophy of "the happiness of the people," is considered one of the leading countries in the world in terms of Bitcoin holdings.

If the price of Bitcoin rises further, will the nation become richer and able to be even more "happy"?

This is merely a hypothesis, but a national strategy that utilizes Bitcoin from a geopolitical perspective, like Bhutan, suggests the possibility of leading to a "redefinition of value" of Bitcoin itself.

Bitcoin is no longer just a currency; its essence may lie in its nature as an "asset."

Where does its value come from?

Throughout history, things that have been clearly recognized as having "asset value" include legal tender such as gold, silver, and the US dollar. So, why are these widely accepted as assets?

Considering the reasons, it can be organized as follows.

What are "real assets" like gold:

• Maintains value over a long period without deterioration
• The supply is limited and highly scarce.
• Widely recognized for its historical and cultural value
• Issue: Transactions and storage are cumbersome, and there are limitations on liquidity.

What is a "systemic asset" like the US dollar:

• Currency supported by the credit of the nation (United States)
• Widely circulated as the world's reserve coin
• Having legal enforceability and high liquidity
• Issue: The issuance is controlled by the government and is susceptible to inflation and monetary policy.

Bitcoin is a new type of asset that has different characteristics compared to gold and dollars, and it is attracting attention for the following reasons.

Aspects Common to Gold (Scarcity, Durability, Transaction Efficiency):

• There is a maximum issuance limit (21 million) → It has a rarity similar to gold and a high predictability of supply.
• Not corroding, not disappearing, permanently recorded on the blockchain → Not subject to physical constraints, excellent long-term preservation.
• All transaction histories are publicly available, making forgery extremely difficult → Achieving high traceability and transparency.
• Can be traded instantly and at low cost in digital form → Superior trading efficiency compared to gold.

Aspects Common with Dollar (Convenience & Accessibility):

• There is no central issuer, and it does not depend on any specific country → A structure that is less susceptible to political and financial policy influences.
• There is a issuance limit, and inflation resistance is structurally built in → The stability of the coin's value is theoretically maintained.
• Remittances and payments can be made anywhere in the world 24 hours a day → It has high global accessibility.
• It can hold and transfer value without intermediaries like governments or banks → It is said to have self-sovereignty and censorship resistance.

However, Bitcoin carries the risk of significant price volatility, and in reality, sharp price movements are often observed. Theoretically, it is said to have inflation resistance, but it is easily influenced by overall market trends and investor sentiment, making it prone to short-term price fluctuations.

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Moreover, even with several advantages, for Bitcoin to establish itself as an "asset," a social consensus that it is "valuable" is essential.

Ultimately, gold and the US dollar have also gained social trust over a long period of time.

Who is really using Bitcoin as an asset?

Currently, several countries have already begun to adopt Bitcoin as a strategic asset.

Policies of various countries

Furthermore, in China, in May 2025, a state-affiliated think tank introduced a report on its official website stating that "Bitcoin should be considered as a national reserve asset."

This is not a policy shift, but it can be seen as a signal of increasing interest in the asset value of Bitcoin.

It is important to note that while Bitcoin is becoming an asset, it is not considered a safe asset like gold. According to a report by CME Group in April 2025, Bitcoin and gold were relatively correlated from the end of 2022 to the end of 2024, but from the beginning of 2025, the divergence trend has strengthened, with gold rising about 16% by the end of March, while Bitcoin reportedly fell by more than 6%.

In fact, the current market capitalization of Bitcoin is only about one-tenth that of gold. Even so, we must not forget the fact that gold has a history of thousands of years, while Bitcoin has only been around for a little over a decade. As time goes on, the potential of Bitcoin may continue to expand.

Government's Bitcoin holdings trend Source: CoinGecko

Symbol of the Age of Disorder

Bitcoin as a prototype of decentralized order

The difference between virtual currencies such as Bitcoin and traditional "assets" lies in their technological essence.

Bitcoin has the first block known as the "Genesis Block," which was mined by Satoshi Nakamoto on January 3, 2009.

This block contains the following impressive message:

"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks (The Times, January 3, 2009: Chancellor on the brink of a second bailout for banks)"

This contains strong irony and criticism of the financial crisis at the time and the government's bank bailout policies, symbolizing that Bitcoin is a watershed of the old era.

Bitcoin, which emerged in such an era, should be seen not just as a technology or an asset, but as an "ideological prototype" that fills the void of trust.

• A structure that cannot be stopped by anyone and cannot be tampered with.
• The concept of establishing trust through code and cryptography rather than "law" or "central authority".
• In an era where information is fragmented and trust is eroding, the need for an "infrastructure to replace the system" is being called for.
• Alongside AI, blockchain, and DAO, a corner of the technology group designing future governance.

This is a perspective that questions not the "mechanism of the economy," but the very "mechanism of society," and Bitcoin stands as a symbolic presence at that entrance.

And Bitcoin embodies the meaning of "revolution," becoming something that cannot be ignored in any country.

BTC shines a light on the "next sovereignty"

In a recent interview, President Trump spoke about the national strategy regarding Bitcoin and cryptocurrencies.

"If America doesn't do it, China will."

(If we don’t do it, China will.)

As this statement suggests, Bitcoin and cryptocurrencies are "decentralized infrastructure," and the idea is spreading that rather than being controlled by someone, those who participate will take the lead.

In fact, although the motivations behind the policies of each country mentioned earlier are different, they are all exploring the use of Bitcoin.

America: Strategic Utilization as Sovereign Assets

• National policy on confiscated BTC holdings
• Emergence of the "Strategic Bitcoin Reserve" concept
• Promotion of mining utilizing renewable energy and surplus power, securing hash power dominance

Russia, Iran, North Korea: Financial Tools Outside the Dollar Zone

• Utilized as a means to evade economic sanctions
• Alternative infrastructure for international remittance and trade settlement
• Seeking "decentralization" from the global financial system

El Salvador, Bhutan, etc.: Economic Reconstruction and Coin Substitution

• Introducing Bitcoin as a legal coin or national revenue source
• Utilize mining revenue for national budget
• Means to avoid domestic currency instability, inflation, and reduce remittance costs

Although the purposes may differ, what is common is the recognition of the potential in the innovation of Bitcoin in preparation for the "era of disorder."

It is difficult to predict what kind of impact virtual coins will ultimately have, but at the very least, a positive and open policy stance is required.

At this time, what position should Japan take and what policy should it propose?

How should Japan face the "era of virtual coins"?

"Progress" and "Stagnation" Coexist in Japan

The attitude towards cryptocurrencies in Japan is complex, with both "progress" and "stagnation" existing simultaneously.

Aspects of Progress

• Japanese IP and technology are gaining international attention in Web3 projects and NFTs.
• The number of domestic cryptocurrency users has exceeded 10 million, demonstrating its presence even within Asia.
• The Ministry of Economy, Trade and Industry, the Digital Agency, and the Cabinet Secretariat are positioning Web3 as a growth strategy.

Aspects of Stagnation

• In income tax, cryptocurrency assets are still treated as miscellaneous income, with a maximum high tax rate of 55%.
• Bitcoin ETFs are unapproved, and the institutional development of DAOs and stablecoins is still in progress.
• There is no clear positioning for Bitcoin and cryptocurrencies as an "asset strategy" in economic policy.

In other words, individuals and investors have already shown interest, but there is caution in institutional support.

Concerns about financial security are understandable, but stronger support will likely be required in the future.

The direction of policy advancement

It is noteworthy that the policy reforms in Japan that have been progressing in recent years.

• In terms of taxation, it is expected that cryptocurrency assets will be separated from traditional comprehensive taxation (with a maximum tax rate of 55%), and a separate taxation system of 20.315% will be introduced in the fiscal year 2026.
• Between 2024 and 2025, the Payment Services Act will be revised, and new systems regarding stablecoins and cryptocurrency intermediary services will be established.
• Recognizing government bonds as backing assets for stablecoins, and introducing a registration system for intermediaries and asset protection obligations.
• The Financial Services Agency plans to submit a bill to amend the Financial Instruments and Exchange Act in the regular Diet session of 2026, intending to incorporate crypto assets into the category of financial products and establish a regulatory framework for ETFs.
• Furthermore, the proposal for "Asset Management Nation" submitted by the Liberal Democratic Party in April 2025 includes the expansion of NISA and the enlargement of GPIF's alternative investments.

Although there is no explicit mention of cryptocurrency in the recommendations, it is highly likely to include the Web3 domain, making it a point of interest for future policy trends.

Private Preparation

Now that Bitcoin is being discussed as part of national strategy, companies and individuals can no longer remain uninvolved.

Particularly from the perspective of diversifying assets and preparing for geopolitical risks, cryptocurrency is becoming a strong option.

Among the publicly listed companies in the stock market, there are movements to hold large amounts of Bitcoin and incorporate it into their balance sheets, as seen with the U.S. company MicroStrategy and Japan's Metaplannet.

This means that companies that consider cryptocurrencies as part of their "strategic reserve assets (financial strategy)" have begun to appear in Japan, and it is already starting to spread to other listed companies.

In this context, the reform of the system and the improvement of the market environment have become an opportunity for individual investors to reconsider their approach to cryptocurrencies.

As a means of long-term asset formation, how to perceive and engage with digital assets such as Bitcoin—the answer lies not only in the institutional development by the government but also in the improvement of individual literacy and the awareness of personal responsibility.

Summary:

Bitcoin is no longer just a coin; it is beginning to be integrated into the strategies of various countries as a symbol of assets, infrastructure, and sovereignty. Its nature, which combines the characteristics of gold and the dollar, is becoming a new standard of value in an era of disorder.

Japan is at a stage where it is exploring how to engage with cryptocurrency through institutional development and private sector movements. The choices made by the state, corporations, and individuals will likely be the key to future economic and technological sovereignty.

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