Cryptocurrency’s Bumpy Route: China’s ICO Suspend
In the wake of China’s ICO ban, what befalls the entire world of cryptocurrencies?
The biggest event in the cryptocurrency world recently was the declaration of the Chinese authorities to shut down the exchanges where cryptocurrencies are traded. Consequently, BTCChina, one of the largest bitcoin exchanges in China, said so it would be ceasing trading activities by the end of September. This news catalysed a sharp sell-off that left bitcoin (and other currencies such as for example Etherium) plummeting approximately 30% below the record highs that 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 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 a fraud. crypto news .. worse than tulip bulbs (in mention of the Dutch ‘tulip mania’ of the 17th century, recognised whilst the world’s first speculative bubble)… that may blow up” ;.He goes to the extent of saying 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 going for a fresh look into the way the cryptocurrency world should/ could be regulated inside their regions. As opposed to banning ICOs, other countries still recognise the technological benefits of crypto-technology, and are looking at controlling the market without completely stifling the growth of the currencies. The major problem for these economies is always to figure out how to get this done, as the alternative nature of the cryptocurrencies don’t 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 in order to handle money laundering and fraud, which have been rendered more elusive due to the crypto-technology. Yet, most regulators do recognise that there seems to be no real benefit to totally banning cryptocurrencies due to the economic flows they carry along. Also, probably because it’s practically impossible to shut down the crypto-world for so long as the net exists. Regulators can just only concentrate 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 to come 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 already been driven from the mainland to the city. Aurelian Menant, CEO of Gatecoin, stated that the business received “a high number 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 ICO ban is only going to fuel their GPU sales, whilst the ban will more than likely boost the demand for cryptocurrency-related GPUs. With the ban, the only path to acquire cryptocurrencies mined with GPUs is always to mine them with computing power. Therefore, individuals looking to acquire cryptocurrencies in China are in possession of to acquire more computing power, as opposed to making straight purchases via exchanges. Essentially, Nvidia’s sentiments is that isn’t a downhill spiral for cryptocurrencies; actually, other industries will be given a boost as well.