What comes in the aftermath of China's ICO ban on the world of cryptocurrencies?
The biggest event in the world of cryptocurrency was recently the Chinese authorities' statement to close the stock exchanges on which cryptocurrencies are traded. As a result, one of the largest bitcoin exchanges in China, BTCChina said it would cease trading at the end of September. This news catalyzed a sharp sale, leaving bitcoin (and other currencies such as Etherium) about 30% below the record highs achieved earlier this month.
So the cryptocurrency roller coaster continues. With bitcoin rises that exceed quadrupled values from December 2016 to September 2017, some analysts predict that it can recover cryptocurrencies from recent falls. Josh Mahoney, a market analyst at IG, notes that the & # 39; past experiences of cryptocurrencies tell us that (they) are likely to override these newest challenges & # 39 ;.
However, these feelings do not come without opposition. Mr. Dimon, CEO of JP Morgan Chase, noted that bitcoin & # 39; is not going to work & # 39; and that it is & # 39; a fraud … worse than tulip bulbs (in reference to the Dutch & # 39; tulip mania & # 39; from the 17th century, recognized as & # 39; the world's first speculative bubble) … it will blow up. "He even says 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 leading economies are reviewing how to regulate the cryptocurrency world in their regions. Instead of banning ICO & # 39; s, other countries are still recognizing the technological benefits of crypto technology and trying to control the market without completely hindering the growth of the & # 39; s currency. The major problem for these economies is to figure out how to do this, because the alternative nature of cryptocurrencies does not allow them to be classified under the policy of traditional investment assets.
Some of these countries are Japan, Singapore and the US. These economies are trying to set accounting standards for cryptocurrencies, especially to tackle money laundering and fraud, which have become more elusive due to crypto technology. Yet most regulators acknowledge that it does not seem to be a real advantage to completely ban cryptocurrencies because of the economic flows they bring. Also probably because it is practically impossible to close the crypto world as long as the internet exists. Regulators can only focus on areas where they could potentially exercise some control, which appears to be where cryptocurrencies meet fiat currencies (i.e., cryptocurrency exchanges).
Although cryptocurrencies seem to get more attention over time, some countries such as Hong Kong benefit from such events. Since the Chinese ICO ban, many founders of cryptocurrency projects have been brought from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said the company "received a large number of questions from founders of mainland blockchain projects" and that the number of Chinese customers registering on the platform has increased noticeably.
Looking a little further, companies like Nvidia have expressed a positive opinion of the event. They claim that this ICO ban will only boost their GPU sales, because the ban is likely to increase the demand for cryptocurrency-related GPUs. With the ban, the only way to obtain cryptocurrencies mined with GPUs is to extract them with computing power. As such, individuals wishing to obtain cryptocurrencies in China must now acquire more computing power, as opposed to direct purchases through stock exchanges. In essence, Nvidia & # 39; s sentiment is that this is not a downward spiral for cryptocurrencies; in fact other industries will also get a boost.
In the light of all the commotion and discussion about cryptocurrencies, the integration of technology into the global economies seems to be hastily materializing. Whether or not you believe in the future of technology, or think it is a "fraud … that will blow up," the cryptocurrency roller coaster is worthy of attention.