TechKnowledgey

Secret Technique to Send Funds Home – Bitcoin

By Daven Lu

Bitcoin has been around for approximately 7 years. Both Japan and the U.S. Treasury categorizes bitcoin as a decentralized virtual currency. Ideally I should write an introduction here about bitcoin, but the information is so vast and the inner workings are quite complex so I’ll leave it to better-read experts on the internet to explain (thanks google!).

Without getting into technical details, let’s play out an example:

I want to send 100,000 yen home using intermediaries.

I go to my bank in Japan, and request the furikomi to transfer funds.
My bank takes a flat fee, 540 yen
The intermediary (*o Remit) takes 2% (hidden in their posted exchange rate), plus a flat fee (2000 yen as of now)
My home bank takes a flat fee ($20 to receive the funds)

So I send 100,000 yen, and pay 540+(100,000*.02)+2000+$20 = 6232 yen in fees.
—-
Alternatively, I can send 100,000 yen into a bitcoin exchange.

I go to my bank in Japan, and request the furikomi to transfer funds to an exchange (coincheck is the largest in Japan).
My bank takes a flat fee, 540 yen
The exchange doesn’t charge to deposit yen.
Buy 100,000 yen worth of bitcoin.
Send bitcoin out into a bitcoin exchange in your home country (For US, Bitfinex or Kraken are good sources), the fee is 0.0001 bitcoins.
You can now sell your bitcoin for your home currency, then withdraw into your bank account. In my case, the exchange Quadrigacx lets me receive money via interac e transfer, so I would be charged $5.

The total fees for this method is anywhere between 800 yen to 1500 yen depending on your home institution rates for wire transfers.

All this sounds good, but isn’t without drawbacks. bitcoin volatility is nuts. Between May 28 and June 1st, the price of Bitcoin has gone up over $100 USD. If you don’t transfer your funds back into fiat within a reasonable time, the exchange rate could fluctuate up or down. Conversely, you could accidentally make money through bitcoin’s volatility if the value goes up by the time you exchange it back for fiat. If you’re interested in saving money, reading into bitcoin is a good idea to get started.

Because bitcoin’s technology is so new, your earnings through it are essentially tax-free in many countries–at the time of writing =)

 

 

Advertisements

One thought on “Secret Technique to Send Funds Home – Bitcoin

  1. Pingback: June Vol. 2 – Summer Vacay! – Good Morning Aomori

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s