While in the wake of China's ICO ban, what befalls the field of
cryptocurrencies?
The biggest event in the cryptocurrency world recently
is the declaration of the Chinese authorities to shut down the trading exchanges
on which cryptocurrencies are traded. As a result, BTCChina, one of the premier
bitcoin exchanges in China, said that it would be ceasing currency trading
activities by the end of September. This news catalysed a pointy sell-off that
left bitcoin (and other currencies that include Etherium) plummeting
approximately 30% below the record highs this were reached earlier this
month.
So , the quantstamp news rollercoaster continues on. With bitcoin
having increases that surpass quadrupled worth from December 2016 to September
2017, some industry analysts predict that it can cryptocurrencies can recover
from the brand-new falls. Josh Mahoney, a market analyst at IG posts that
cryptocurrencies' "past experience tells us that [they] will likely brush these
latest challenges aside".
Nonetheless , these sentiments don't come
without opposition. Mr Dimon, CEO of JPMorgan Chase, remarked that bitcoin
"isn't going to work" and that it "is a fraud... rather more serious than tulip
bulbs (in reference to the Dutch 'tulip mania' of the 17th century, recognised
as the world's earliest speculative bubble)... that will blow up". He goes to
the main extent of saying that he would fire employees who were ignorant enough
to trade in bitcoin.
Speculation aside, what exactly actually going on?
Since China's ICO ban, other world-leading economies are taking a fresh look
into how the cryptocurrency world should/ can be regulated in their regions.
Rather than banning ICOs, various countries still recognise the technological
benefits of crypto-technology, as they are looking into controlling the market
without completely stifling the growth belonging to the currencies. The big
issue for these economies is to figure out how to execute this, as the
alternative nature of the cryptocurrencies do not allow them to come to be
classified under the policies of traditional investment assets.
Well
known countries include Japan, Singapore and the US. These companies seek to
establish accounting standards for cryptocurrencies, mainly to handle money
laundering and fraud, which have been rendered a tad bit more elusive due to the
crypto-technology. Yet, most regulators do consider that there seems to be no
real benefit to completely banning cryptocurrencies due to the economic flows
that they carry along. Also, quite possibly because it is practically impossible
to shut down the crypto-world for as long as cyberspace exists. Regulators can
only focus on areas where they may be able to physical fitness some control,
which seems to be where cryptocurrencies meet uno currencies (i. e. the
cryptocurrency exchanges).
While cryptocurrencies seem to come under more
scrutiny as time advances, such events do benefit some countries like Hk. Since
the Chinese ICO ban, many founders of cryptocurrency projects have been driven
from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said that the
company received "a high number of inquiries from blockchain project founders
serving the area around the mainland" and that there has been an observable
surge while in the number of Chinese clients registering on the
platform.
Looking to some degree further, companies like Nvidia have
expressed positivity within the event. They claim that this ICO ban will only
gasoline or diesel their GPU sales, as the ban will likely increase the need
cryptocurrency-related GPUs. With the ban, the only way to obtain
cryptocurrencies extracted with GPUs is to mine them with computing power. The
result, individuals looking to obtain cryptocurrencies in China now have to
obtain additional computing power, as opposed to making straight purchases via
conversations. In essence, Nvidia's sentiments is that this isn't a downhill
spiral meant for cryptocurrencies; in fact , other industries will receive a
boost as well.
Because of all the commotion and debate surrounding
cryptocurrencies, the integration within the technology into the global
economies seem to be materialising hastily. Irrespective of whether you believe
in the future of the technology, or think that it is a "fraud... that will blow
up", the cryptocurrency rollercoaster is one seriously worth your attention.
