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 where cryptocurrencies are traded. As a result, BTCChina, among the biggest bitcoin exchanges in China, stated it would be ceasing trading pursuits by the end of September. This news catalysed a sharp sell off that left bitcoin (and other currencies like Etherium) plummeting approximately 30 % below the record highs that had been achieved earlier this month.
Thus, the cryptocurrency rollercoaster continues. With bitcoin having increases that surpass quadrupled values from December 2016 to September 2017, several analysts predict it is able to cryptocurrencies are able to recover from the latest falls. Josh Mahoney, a sector analyst at IG commentary which cryptocurrencies’ “past experience informs us that [they] will probably brush probably these latest challenges aside”.
Nevertheless, these sentiments don’t come without opposition. Mr Dimon, CEO of JPMorgan Chase, remarked bitcoin “isn’t gon na work” and that it “is a fraud… even worse than tulip bulbs (in reference to the Dutch’ tulip mania’ of the 17th century, recognised as the world’s first speculative bubble)… which will blow up”. He goes to the amount of saying that he would fire people that were stupid enough to swap in bitcoin.
Speculation aside, what’s actually going on? Since China’s ICO ban, additional world-leading economies are taking a fresh look into the way the cryptocurrency world should/ can be regulated in the regions of theirs. As an alternative to banning ICOs, some other countries still recognise the technological advantages of crypto technology, and are looking into controlling the marketplace without completely stifling the progress of the currencies. The big problem for these economies would be to figure out how to accomplish this, as the answer design of the cryptocurrencies do not permit them being classified under the policies of traditional investment assets.
Some of these countries include Japan, Singapore and also the US. These economies seek to set accounting standards for cryptocurrencies, largely in order to deal with fraud and money laundering, which are rendered more elusive on account of the crypto-technology. Nonetheless, many regulators do recognise that there appears to be no real advantage to totally banning cryptocurrencies due to the economic flows they carry along. Also, possibly since it’s virtually impossible to turn off the crypto world for so long as the internet exists. airdrop are only able to concentrate on areas where they may be ready to exercise some control, which appears to be exactly where cryptocurrencies satisfy fiat currencies (i.e. the cryptocurrency exchanges).
While cryptocurrencies seem to come under far more scrutiny as time progresses, such events do benefit some places like Hong Kong. Since the Chinese ICO ban, lots of founders of cryptocurrency projects have been pushed from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said that the organization received “a high number of requests from blockchain project founders based in the mainland” and that there continues to be an observable rise in the amount of Chinese customers registering on the wedge.
Looking somewhat further, companies as Nvidia have shown positivity from the occasion. They claim that this ICO ban will only fuel their GPU product sales, as the ban will likely improve the demand for cryptocurrency-related GPUs. With the ban, the sole method to find cryptocurrencies mined with GPUs is to mine them with computing power. As a result, people planning to get cryptocurrencies in China now have to get more computing power, rather than creating straight buying via exchanges. Essentially, Nvidia’s sentiments is that this isn’t a downhill spiral for cryptocurrencies; in reality, some other industries will get a boost also.
In light of all the commotion and debate surrounding cryptocurrencies, the integration of the science into the global economies appear to be materialising hastily. Whether you think in the future of the engineering, or even believe it is a “fraud… that will blow up”, the cryptocurrency rollercoaster is but one worth the attention of yours.