Cryptocurrency’s Rocky Road: China’s ICO Ban

In the wake of China’s ICO ban, what befalls the world of cryptocurrencies?

The largest event in the cryptocurrency universe recently was the declaration of the Chinese authorities to power down the interchanges on which cryptocurrencies are traded. As a result, BTCChina, one of the largest bitcoin exchanges in China, said that it will be ceasing trading pursuits by the tail end of September. This news catalysed a sharp sell-off that still left bitcoin (and other currencies like Etherium) plummeting approximately thirty % below the record highs which were attained before this month.

So, the cryptocurrency rollercoaster goes on. With bitcoin having increases which usually surpass quadrupled values from December 2016 to September 2017, several analysts forecast that it is able to cryptocurrencies are able to get over the recent falls. Josh Mahoney, a market place analyst at IG remarks which cryptocurrencies’ “past experience informs us that [they] will likely brush these latest issues aside”.

Nevertheless, these sentiments don’t come with no opposition. Mr Dimon, CEO of JPMorgan Chase, remarked bitcoin “isn’t likely to 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 would go to the amount of thinking that he will fire people which were stupid enough to trade in bitcoin.

Speculation aside, what is going on? Since China’s ICO ban, other world-leading economies are going for a refreshing look into the way the cryptocurrency industry should/ can be controlled in their regions. Instead of banning ICOs, some other countries even now recognise the technological great things about crypto-technology, and are looking at manipulating the marketplace without completely stifling the advancement of the currencies. The main issue for these economies is figuring out the way to do this, as the alternative design of the cryptocurrencies do not let them being labeled under the policies of conventional investment assets.

Several of these countries include Japan, Singapore and the US. These economies seek out to establish accounting expectations for cryptocurrencies, generally in order to manage fraud and money laundering, which have been transformed more elusive because of the crypto technology. Yet, the majority of regulators do recognise that there seems to be no realistic advantage to fully banning cryptocurrencies due to the economic flows which they carry along. Also, probably because it is practically impossible to shut down the crypto-world for as long as the internet exists. Regulators are only able to concentrate on places that they can be in a position to work out a little control, which regularly appears to be exactly where cryptocurrencies fulfill fiat currencies (i.e. the cryptocurrency exchanges).

While cryptocurrencies seem to come under more scrutiny as time progresses, such gatherings do be helpful to some countries as Hong Kong. Since the Chinese ICO ban, a lot of founders of cryptocurrency projects are driven from the mainland on the city. Aurelian Menant, CEO of Gatecoin, said that the company received “a high amount of inquiries from blockchain venture founders based in the mainland” and that there has become an observable rise in how many Chinese consumers registering on the wedge.

Looking slightly further, companies like Nvidia have conveyed positivity from the event. They claim that this ICO ban will fuel their GPU product sales, as the ban will likely improve the desire for cryptocurrency related GPUs. With the ban, the only way to find cryptocurrencies mined with GPUs is to mine them with computing power. As such, folks looking to find cryptocurrencies in China nowadays have to obtain more computing power, instead of making straight purchases via exchanges. Basically, Nvidia’s sentiments is this isn’t a downhill spiral for cryptocurrencies; in fact, many other industries will get an increase in the process.

In light of all the commotion and controversy surrounding cryptocurrencies, the integration of the science into the international economies seem to be materialising hastily. Whether or Crypto signals think in the world of the technology, and believe it is a “fraud… which will blow up”, the cryptocurrency rollercoaster is but one worth the attention of yours.

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