Photo: A fountain at the Hong Kong Zoological and Botanical Gardens engraved with the words: “HERE LIES THE RAINBOW FOR WISHFUL THINKERS.”
Happy New Year!
We wish you all the best for 2025 and look forward to your continued support throughout the year.
As we step into 2025, we strongly feel that it is crucial for each individual to take concrete actions to address the growing divisions in the world, including the widening gap between the rich and the poor, as well as the increasing uncertainty we face. Responding effectively to these challenges requires clear understanding and decisive action.
Understanding the Present: The Expanding Global Gap
As 2025 begins, Japan’s economy remains in a challenging state, though this is not unique to Japan. Globally, it’s increasingly difficult to define any country as clearly “better off” than another. In today’s capitalist world, factors such as wars and technological innovation are widening the gap between those who succeed and those who struggle.
For instance, in the U.S., AI-focused companies like OpenAI are raising billions, and giants like GAFAM (Google, Apple, Facebook, Amazon and Microsoft) and NVIDIA dominate the stock market. However, this isn’t a case of “America taking the lead””—it’s a handful of companies leading the charge. Many U.S. industries are in decline, and problems such as poverty, drug addiction, and crime remain pressing issues. This disparity is part of the backdrop for Donald Trump’s re-election campaign with the slogan “Make America Great Again.”
In Japan, except for the tourism sector, few industries are flourishing. However, this shouldn’t be seen too negatively. Many other nations also face economic difficulties. In fact, visitors from Hong Kong, where the economy is impacted by China’s slowdown, often feel Japan’s economic situation is more vibrant, thanks to the bustling tourist activity.
Key Themes for 2025 and KYGO’s Approach
Trump’s Policies and U.S. Debt Reduction
One major focus this year is Trump’s policy direction and the trajectory of the Ukraine conflict. Specifically, the success or failure of Elon Musk’s “Department of Government Efficiency (DOGE)” in reducing U.S. debt could have global repercussions. If successful, it may strengthen the dollar. If not, escalating U.S. Goverment debt could undermine confidence in the dollar, boosting interest in assets like Bitcoin and gold.
For Japan, this is significant because any change in the dollar’s position will impact the yen. A stronger dollar could drive further yen depreciation, increasing import costs and inflation in Japan. Conversely, if the dollar weakens, capital may shift to alternatives like Bitcoin and gold rather than returning to the yen. This underscores the importance of managing assets and investments with an eye on dollar dynamics.
The Ukraine War and Bitcoin Mining
The ongoing Ukraine war also impacts our business. Our Bitcoin mining operations in Siberia are influenced by Russia’s economic conditions and the war’s progression. Prolonged conflict could raise costs through inflation, while a weak ruble may help control dollar-based expenses. However, risks like new taxes in Russia remain.
Even if the conflict de-escalates, sanctions on Russia are unlikely to lift immediately, meaning continued global market instability. This could further erode trust in the dollar, making Bitcoin mining an increasingly vital strategy.
To adapt, we are not only continuing operations in Siberia but also exploring opportunities in Ethiopia, the U.S., and other regions. By diversifying our mining efforts, we aim to build robust assets resistant to economic fluctuations.
Specific Initiatives
1. Expanding Mining Operations and New Platforms
We are exploring Bitcoin mining in regions like Ethiopia, known for abundant renewable energy, and the U.S., which offers stable legal frameworks.
Our Rai Lai project, launched last year, provides a platform for those interested in Bitcoin ownership. Through regular updates on Siberian mining and Bitcoin insights via our website and social channels, we aim to broaden awareness of Bitcoin’s potential.
2. Consulting and Support for Individuals Relocating to Japan
As Japan offers a high-quality living environment and relatively low cost of living, we believe that more people will consider relocating here in the future. At the same time, with Japan’s rapidly aging population, foreign residents will play an increasingly essential role in supporting Japanese society.
Building on the expertise we have developed over the years, we aim to integrate advanced AI-powered services into our offerings. These new tools will complement our existing experience, enabling us to provide even more comprehensive support for individuals considering a move to Japan. From navigating immigration procedures to finding housing and adapting to local communities, we are committed to making the relocation process smoother and more rewarding.
Through this combination of experience and innovation, we hope to help foreign residents thrive in Japan while fostering mutual understanding and cooperation with Japanese society.
In Closing
In a world increasingly shaped by capitalism’s highs and lows, we strive to help more people find hope and take positive steps forward through Bitcoin and AI-driven solutions.
Wishing you a prosperous 2025! We look forward to your continued support.
January 7, 2025
Masahiro Honna
Managing Director, KYGO