In the wake of China’s ICO ban, what befalls the planet of cryptocurrencies?
The greatest event in the cryptocurrency world recently was the declaration of the Chinese authorities to turn off 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 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 recover from the recent falls. Josh Mahoney, a market analyst at IG comments that cryptocurrencies’ “past experience tells us that [they] will 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 mention of the Dutch ‘tulip mania’ of the 17th century, recognised because the world’s first speculative bubble)… that will blow up” ;.He would go to the extent of saying that he would fire employees who have been stupid enough to trade in bitcoin.
Speculation aside, what’s actually going on? Since China’s ICO ban, other world-leading economies are having a fresh consider how a cryptocurrency world should/ CashTab XEC could be regulated within their regions. Rather than banning ICOs, other countries still recognise the technological great things about crypto-technology, and are looking at controlling the marketplace without completely stifling the growth of the currencies. The big problem for these economies is always to figure out how to achieve this, as the alternative nature of the cryptocurrencies do not allow them to be classified under the policies of traditional investment assets.
A few of these countries include Japan, Singapore and the US. These economies seek to ascertain 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. Yet, most regulators do recognise that there appears to be no real benefit to fully banning cryptocurrencies as a result of economic flows they carry along. Also, probably because it is practically impossible to turn off the crypto-world for so long as the web exists. Regulators can only focus on areas where they could have the ability to exercise some control, which appears 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. Because the Chinese ICO ban, many founders of cryptocurrency projects have already been driven from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said that the business received “a lot of inquiries from blockchain project founders situated in the mainland” and that there has been an observable surge in how many 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, because the ban will likely boost 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. Therefore, individuals looking to acquire cryptocurrencies in China will have to acquire more computing power, in place of making straight purchases via exchanges. In essence, Nvidia’s sentiments is that this isn’t a downhill spiral for cryptocurrencies; in fact, other industries will get a boost as well.