Inside the wake of China’s ICO ban, what befalls the field of cryptocurrencies?
The biggest event in the cryptocurrency world lately was the declaration of the Chinese authorities to shut over the exchanges on which cryptocurrencies are exchanged. As a result, BTCChina, one of the major bitcoin exchanges in Cina, declared that it would be ceasing trading activities by the end of Sept. 2010. This news catalysed a sharp sell-off that kept bitcoin (and other foreign currencies such as Etherium) rapidly declining approximately 30% below the record highs which were come to earlier this month. http://xumel.com
For that reason, the cryptocurrency rollercoaster proceeds. With bitcoin having raises that surpass quadrupled principles from December 2016 to September 2017, some experts predict that it can cryptocurrencies can recover from the recent falls. Josh Mahoney, an industry expert at IG comments that cryptocurrencies’ “past experience explains to us that [they] will likely remember to brush these latest challenges aside”.
Yet , these sentiments avoid come without opposition. Mister Dimon, CEO of JPMorgan Chase, remarked that bitcoin “isn’t going to work” which it “is a fraud… worse than tulip bulbs (in reference to the Dutch ‘tulip mania’ of the 17th 100 years, recognised as the uk’s first speculative bubble)… that will blow up”. This individual goes to the level of saying that he would fire employees who were stupid enough to transact in bitcoin.
Speculation besides, precisely what is actually going on? Since China’s ICO ban, other leading economies are taking a fresh check into how the cryptocurrency world should/ can be regulated in their regions. Rather than banning ICOs, other countries still recognise the technological benefits associated with crypto-technology, and are looking into controlling the market without completely stifling the growth of the values. The big issue for people economies is to number out the right way to do this, as the alternative nature of the cryptocurrencies do not allow those to be categorized under the policies of traditional investment assets.
A few of these countries include Japan, Singapore and america. These economies seek to establish accounting standards for cryptocurrencies, mainly in order to handle money washing and fraud, which has been made more elusive as a result of crypto-technology. Yet, most regulators do recognise that there appears to be no real benefit to completely banning cryptocurrencies because of the monetary flows that they carry along. Also, probably because it is pretty much impossible to shut throughout the crypto-world for as long as the internet is present. Regulators can easily give attention to areas where they may be capable to exercise some control, which appears to be where cryptocurrencies meet fiat currencies (i. e. the cryptocurrency exchanges).
While cryptocurrencies seem to be to come under more overview as time progresses, such events do benefit some countries like Hong Kong. Since the Chinese ICO ban, many founders of cryptocurrency projects have recently been driven from the landmass to the city. Aurelian Menant, CEO of Gatecoin, declared the company received “a large number of inquiries from blockchain job founders based in the mainland” and that there has been an visible surge in the quantity of Oriental clients registering on the platform.
Looking slightly further, companies like Nvidia have expressed positivity from the case. They claim that this ICO ban will only fuel their GPU sales, as the ban will likely improve the with respect to cryptocurrency-related GPUs. With the ban, the only way to obtain cryptocurrencies mined with GPUs is to mine them with computing power. As such, individuals looking to obtain cryptocurrencies in China surely have to obtain more computer power, rather than making in a straight line purchases via exchanges. Found in essence, Nvidia’s sentiments is that this isn’t a downhill spiral for cryptocurrencies; in fact, other industrial sectors will receive an increase as well.