In the wake of China’s ICO ban, what befalls the planet of cryptocurrencies?
The biggest event in the cryptocurrency world recently was the declaration of the Chinese authorities to power down the exchanges on which cryptocurrencies are traded. Consequently, BTCChina, one of the largest bitcoin exchanges in China, said so it will be ceasing trading activities by the conclusion of September. This news catalysed a sharp sell-off that left bitcoin (and other currencies such as for instance Etherium) plummeting approximately 30% below the record highs which were reached earlier this month.
So, the cryptocurrency rollercoaster continues. With bitcoin having increases that surpass quadrupled values from December 2016 to September 2017, some analysts predict so it can cryptocurrencies can get over the recent falls. Josh Mahoney, a market analyst at IG comments that cryptocurrencies’ “past experience tells us that [they] will probably brush these latest challenges aside” ;.
However, these sentiments don’t come without opposition. Mr Dimon, CEO of JPMorgan Chase, remarked that bitcoin “isn’t planning to work” and so it “is just a fraud… worse than tulip bulbs (in reference to the Dutch ‘tulip mania’ of the 17th century, recognised whilst the world’s first speculative bubble)… that will blow up” ;.He visits the extent of saying that he would fire employees who were stupid enough to trade in bitcoin.
Speculation aside, what is actually going on? Since China’s ICO ban, other world-leading economies are going for a fresh look into the way the cryptocurrency world should/ could be regulated within their regions. Rather than banning ICOs, other countries still recognise the technological advantages of crypto-technology, and are considering controlling industry without completely stifling the growth of the currencies. The big problem for these economies is always to work out how to achieve this, as the choice nature of the cryptocurrencies do not allow them to be classified underneath the policies of traditional investment assets.
Some of those countries include Japan, Singapore and the US. These economies seek to determine accounting standards for cryptocurrencies, mainly to be able to handle money laundering and fraud, which were rendered more elusive as a result of crypto-technology. safe trading Yet, most regulators do recognise that there seems to be no real benefit to totally banning cryptocurrencies as a result of economic flows which they carry along. Also, probably because it’s practically impossible to power down the crypto-world for so long as the web exists. Regulators can only concentrate on areas where they may be able to exercise some control, which seems to be where cryptocurrencies meet fiat currencies (i.e. the cryptocurrency exchanges).
While cryptocurrencies seem ahead under more scrutiny as time progresses, such events do benefit some countries like Hong Kong. Considering that the Chinese ICO ban, many founders of cryptocurrency projects have been driven from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said that the organization received “a high number of inquiries from blockchain project founders located in the mainland” and that there’s been an observable surge in the number of Chinese clients registering on the platform.
Looking slightly further, companies like Nvidia have expressed positivity from the event. They claim that this ICO ban is only going to fuel their GPU sales, whilst the ban will probably increase the demand for cryptocurrency-related GPUs. With the ban, the only method to acquire cryptocurrencies mined with GPUs is always to mine them with computing power. As such, individuals looking to acquire cryptocurrencies in China are in possession of to acquire more computing power, in place of making straight purchases via exchanges. Basically, Nvidia’s sentiments is that this isn’t a downhill spiral for cryptocurrencies; in reality, other industries will receive a boost as well.