Cryptocurrency’s Rocky Road: China’s ICO Ban
Following the ban by China’s ICO, what is the cryptocurrencies world going on?
The biggest case in the world of cryptocurrency exchange was recently the Chinese government’s announcement that the trade of cryptocurrencies is being shut down. Consequently, by the end of September, BTC China, one of China’s largest Bitcoin trading firms, has said it will cease trading activities. This news has catalyzed sharp prices, which fell to approximately 30 percent below record highs earlier in this month, of left Bitcoin (and other currencies like Etherium).
Thus, the roller coaster cryptocurrency goes on. With Bitcoin rising quadruples between December 2016 and September 2017, some analysts expect it will rebound from the current drop in cryptocurrencies. Josh Mahoney, an IG analyst, comments that “the past history of cryptocurrencies tells us that these new problems are definitely going to be brushed aside.”
However, without resistance, these feelings are not shared. JPMorgan Chase CEO Mr Dimon said bitcoin “doesn’t work” and that it “is fraud … worse than tulip bulbs (as regards the Dutch tulip mania of the XVII century, which has been known as the world’s first speculative bubble) … He went so far as to suggest he would fire workers who were dumb enough to deal with bitcoin.
What’s going on, speculation aside? Since the Chinese ICO prohibition, other leading world economies have been looking at ways of controlling the world of cryptocurrency in their regions. Rather than banning ICOs, other countries continue to recognize cryptotechnology’s technological advantages and are looking into regulating the market without totally stifling currency development. The biggest challenge for these economies is how to do this, since the alternative existence of cryptocurrencies does not make it possible for these economies to be listed under the conventional investment asset strategy.
Many of them include Japan, Singapore and the United States. These economies are trying to set accounting requirements for cryptocurrencies which have largely been made less costly by crypto-technology , in order to deal with fraud and money laundering. However, most regulators agree that the full ban on cryptocurrencies does not seem to be of genuine advantage due to the financial flows they bring. Also, maybe because the crypto universe can not be shut down almost until the web is there. Regulators should only focus on the areas that they might be willing to exert a limited degree of regulation that seems to be exactly that fiat currencies (i.e. cryptocurrency trading) meet.
While cryptocurrencies are appearing to be far more investigated as time goes on, some countries like Hong Kong benefit from these events. After the ICO ban in China, multiple founders have been pushing cryptocurrency ventures from the mainland to the region. Menant, CEO of Gatecoin, said the company received a “high number of inquiries from the mainland-based project creators,” and the amount of Chinese customers on the platform was measurable.
Companies like Nvidia have shared their support for the case a little more. They claim this ICO prohibition would raise GPU sales because the ban would possibly increase the need for GPUs associated with cryptocurrencies. The prohibition is the only way to acquire GPU-mined cryptocurrencies by computing them. Thus, people who want to get cryptocurrencies today in China need to acquire more computer resources instead of shopping straight through exchanges. Essentially, Nvidia ‘s feelings that this is not a cryptocurrencies downhill; indeed, several other industries may also gain traction.
In view of all the upheaval and controversy about cryptocurrencies, technology penetration into global economies seems to be rapidly materialising. If you think of technology in the future or maybe think it’s a “fraud … that’s going to explode,” the rollercoaster in cryptoeconomics is worthy of your attention.