Cryptocurrency’s Bumpy Rd: China’s ICO Exclude
In the wake of China’s ICO ban, what befalls the entire world of cryptocurrencies?
The largest 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 many largest bitcoin exchanges in China, said so it will be ceasing trading activities by the end of September. This news catalysed a sharp sell-off that left bitcoin (and other currencies such as Etherium) plummeting approximately 30% below the record highs that have been 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 more than likely 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 because the world’s first speculative bubble)… that may blow up” ;.He visits the extent of saying 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 consider the way the cryptocurrency world should/ can be regulated within their regions. Rather than banning ICOs, other countries still recognise the technological great things about crypto-technology, and are looking into controlling industry without completely stifling the growth of the currencies. The big problem for these economies would be to figure out how to achieve this, as the alternative nature of the cryptocurrencies do not allow them to be classified underneath the policies of traditional investment assets.
A few of these countries include Japan, Singapore and the US. These economies seek to determine accounting standards for cryptocurrencies, mainly in order to handle money laundering and fraud, which were rendered more elusive because of the crypto-technology. crypto news Yet, most regulators do recognise that there seems to be no real benefit to fully banning cryptocurrencies because of the economic flows that they carry along. Also, probably because it’s practically impossible to power down the crypto-world for as long as the web exists. Regulators can just only focus on areas where they could have the ability to exercise some control, which seems to be where cryptocurrencies meet fiat currencies (i.e. the cryptocurrency exchanges).
While cryptocurrencies seem in the future under more scrutiny as time progresses, such events do benefit some countries like Hong Kong. Since the Chinese ICO ban, many founders of cryptocurrency projects have now been driven from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said that the company received “a lot of inquiries from blockchain project founders located in the mainland” and that there’s been an observable surge in the amount of Chinese clients registering on the platform.
Looking slightly further, companies like Nvidia have expressed positivity from the event. They claim that ICO ban is only going to fuel their GPU sales, because the ban will more than likely increase the demand for cryptocurrency-related GPUs. With the ban, the only path to acquire cryptocurrencies mined with GPUs would be to mine them with computing power. Therefore, individuals looking to acquire cryptocurrencies in China will have to acquire more computing power, as opposed to making straight purchases via exchanges. In essence, Nvidia’s sentiments is that isn’t a downhill spiral for cryptocurrencies; in reality, other industries will get a boost as well.