In the wake of China's ICO ban, what happens to the cryptocurrency world?
The biggest event in the cryptocurrency world recently was the announcement by the Chinese authorities to close exchanges where cryptocurrencies are traded. As a result, BTCChina, one of China's largest Bitcoin exchanges, said it would halt trading activities by the end of September. This news spurred sharp selloffs that left Bitcoin (and other currencies such as Etherium) down almost 30% from record highs reached earlier this month.
Therefore, the rollercoaster cercocurrency continues. With the bitcoin value exceeding the quadrant values from December 2016 to September 2017, some analysts predict that cryptocurrencies can recover from recent declines. Josh Mahoney, IG market analyst, commented that "past experience" tells us that (these) are likely to ignore these latest challenges aside. "
However, these feelings do not come without opposition. Mr. Damon, CEO of JPMorgan Chase, pointed out that bitcoin "will not work" and that it is "a scam … worse than lily bulbs (referring to the 17th century Dutch" tulip mania ", which was recognized as" the first Speculative bubble in the world) … will burst. ”He went so far as to say he would fire employees who were stupid enough to trade Bitcoin.
Speculation aside, what is really going on? Since the ICO ban in China, other leading economies in the world have begun to take a fresh look at how the cryptocurrency world can be regulated in their regions. Instead of banning ICOs, other countries are still aware of the technological benefits of encryption technology, and are looking to control the market without completely stifling currency growth. The big issue for these economies is how to do this, as the alternative nature of cryptocurrencies does not allow them to be classified according to traditional investment asset policies.
Some of these countries include Japan, Singapore and the United States. These economies seek to establish accounting standards for cryptocurrencies, mainly in order to address money laundering and fraud, which has become more elusive because of encryption technology. However, most regulators recognize that there does not seem to be any real benefit in banning cryptocurrencies entirely because of the economic flows they carry. Also, perhaps because it is practically impossible to close the encryption world as long as the Internet exists. Regulators can focus only on areas where they may be able to exercise some control, which seems to be where cryptocurrencies meet in paper currency (ie, cryptocurrency exchanges).
While cryptocurrencies appear to be subject to further scrutiny over time, such events benefit some countries such as Hong Kong. Since the Chinese ICO ban, many founders of cryptocurrency projects have been relocated from the mainland to the city. Aurelian Menant, chief executive of Gatecoin, said the company had received "a large number of inquiries from mainland-based blockchain project founders" and that there had been a marked increase in the number of Chinese customers registering on the platform.
Looking a little further, companies like Nvidia have expressed a positive outlook. They claim that blocking this ICO will only increase their GPU sales, as the ban is likely to increase demand for GPUs linked to cryptocurrencies. With the ban, the only way to get cryptocurrencies extracted from GPUs is to extract them from computational power. As such, individuals who are looking for cryptocurrencies in China now need more computing power, rather than making direct purchases via exchanges. In essence, Nvidia's feelings are that this is not a downward spiral of cryptocurrencies; in fact, other industries will receive a boost as well.
Given the uproar and debate surrounding cryptocurrencies, the integration of technology into global economies seems to be hastening. Whether you believe in the future of technology or not, or think it is a "scam … will explode," the cryptocurrency profile is worth your attention.