In crypto signals telegram of China’s ICO ban, what befalls the world of cryptocurrencies?
The greatest event in the cryptocurrency community recently was the declaration of the Chinese authorities to shut down the interchanges on which cryptocurrencies are traded. As an outcome, BTCChina, among the largest bitcoin exchanges in China, said that it would be ceasing trading activities by the conclusion of September. This news catalysed a sharp sell off that still left bitcoin (and other currencies including Etherium) plummeting approximately thirty % below the record highs which often were reached before this month.
Hence, the cryptocurrency rollercoaster carries on. With bitcoin having increases which surpass quadrupled values from December 2016 to September 2017, some analysts forecast it is able to cryptocurrencies are able to overcome the latest falls. Josh Mahoney, a market place analyst at IG comments which cryptocurrencies’ “past experience tells us that [they] will probably brush these latest issues aside”.
Nonetheless, these sentiments do not come with no opposition. Mr Dimon, CEO of JPMorgan Chase, remarked that bitcoin “isn’t likely to work” and that it “is a fraud… much worse compared to tulip bulbs (in reference to the Dutch’ tulip mania’ of the 17th century, recognised as the world’s very first speculative bubble)… which will blow up”. He would go to the scope of saying that he will fire employees which were stupid enough to exchange in bitcoin.
Speculation aside, what’s going on? Since China’s ICO ban, other world-leading economies are taking a fresh look into the way the cryptocurrency industry should/ may be managed in their places. Rather than banning ICOs, many other countries still recognise the technological great things about crypto-technology, and are looking into manipulating the market without totally stifling the advancement of the currencies. The fundamental concern for these economies is to figure out the way to accomplish this, as the answer nature of the cryptocurrencies do not enable them being classified under the policies of traditional investment assets.
Some of these countries include Japan, Singapore and the US. These economies look for to establish accounting criteria for cryptocurrencies, primarily to be able to tackle money laundering and fraud, which are made more elusive on account of the crypto technology. But, the majority of regulators do recognise that there seems to be no realistic advantage to completely banning cryptocurrencies on account of the financial flows they carry along. Also, probably because it is practically impossible to shut down the crypto-world for as long as the internet exists. Regulators can only focus on places where they might be in a position to work out a little control, that appears to be exactly where cryptocurrencies meet fiat currencies (i.e. the cryptocurrency exchanges).
While cryptocurrencies seem to come under more scrutiny as time progresses, such presentations do benefit some countries like Hong Kong. Since the Chinese ICO ban, many founders of cryptocurrency projects have been completely driven from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said that the company received “a high amount of queries from blockchain task founders dependent in the mainland” which there has become an observable rise in the number of Chinese customers registering on the platform.
Looking somewhat further, companies as Nvidia have shown positivity from the occasion. They claim that this specific ICO ban will simply fuel their GPU sales, as the ban will likely increase the desire for cryptocurrency related GPUs. With the ban, the sole method to get cryptocurrencies mined with GPUs is mining them with computing power. As a result, folks looking to find cryptocurrencies in China now must obtain more computing power, as opposed to creating straight purchases via switches. In essence, Nvidia’s sentiments is this isn’t a downhill spiral for cryptocurrencies; in fact, other industries will receive a boost too.
In light of all of the commotion and discussion surrounding cryptocurrencies, the integration of the science into the worldwide economies appear to be materialising hastily. Whether you imagine in the future of the technology, or think it’s a “fraud… designed to blow up”, the cryptocurrency rollercoaster is one worth your attention.