In the wake of China’s ICO ban, what befalls the world of cryptocurrencies?

The largest event in the cryptocurrency world recently was the declaration of the Chinese authorities to shut down the exchanges on which cryptocurrencies are traded. As a result, BTCChina, one of many largest bitcoin exchanges in China, said so it could 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 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 forex trading cryptocurrencies can get over 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 the Dutch ‘tulip mania’ of the 17th century, recognised while the world’s first speculative bubble)… which will blow up” ;.He visits the extent of saying he would fire employees who have been stupid enough to trade in bitcoin.

Speculation aside, what is actually going on? Since China’s ICO ban, other world-leading economies are having a fresh explore how the cryptocurrency world should/ can be regulated inside their regions. As opposed to banning ICOs, other countries still recognise the technological advantages of crypto-technology, and are looking at controlling the market without completely stifling the growth of the currencies. The big issue for these economies is to work out how to get this done, as the choice nature of the cryptocurrencies don’t allow them to be classified underneath the policies of traditional investment assets.

Some of these 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 have been rendered more elusive as a result of crypto-technology. Yet, most regulators do recognise that there seems to be no real benefit to completely banning cryptocurrencies as a result of economic flows that they carry along. Also, probably because it’s practically impossible to shut down the crypto-world for so long as the internet exists. Regulators can only focus on areas where they might 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 already been driven from the mainland to the city. Aurelian Menant, CEO of Gatecoin, stated that the organization received “a large number 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 this ICO ban will simply fuel their GPU sales, while the ban will likely boost the demand for cryptocurrency-related GPUs. With the ban, the only path to obtain cryptocurrencies mined with GPUs is to mine them with computing power. Therefore, individuals looking to obtain cryptocurrencies in China are in possession of to obtain more computing power, rather than making straight purchases via exchanges. Basically, Nvidia’s sentiments is this isn’t a downhill spiral for cryptocurrencies; actually, other industries will receive a boost as well.

Leave a Reply

Your email address will not be published. Required fields are marked *