After China's ICO ban, what is the world of cryptocurrencies?
The biggest cryptocurrency in the world recently was the Chinese authorities' statement to close exchanges that negotiate cryptocurrencies. As a result, BTCChina, one of the largest stock markets in China, said it would stop trading until the end of September. The news recorded a sharp drop that allowed bitcoin (and other currencies such as Etherium) to fall by about 30% below record highs earlier this month.
Consequently, the cryptocurrency rollercoaster continues. With bitcoin surging more than quadrupled from December 2016 to September 2017, some analysts predict they may be hiding from recent declines. Josh Mahoney, a market analyst at IG, commented that "the past experience of cryptocurrencies tells us that these latest challenges will probably be eliminated."
However, these feelings do not come without contrast. Mr Dimon, Managing Director of JPMorgan Chase, observed that bitcoin was "not going to work" and that "it is a scam … worse than tulip lamps (compared to the Dutch 17th century" tulip fury ", the first speculative bubble in the world) … to blow up. " He goes so far as to say that he would shoot down workers who were stupid enough to trade in bitcoin.
Beyond speculation, what's really going on? Since the ban on China's ICO, other world-dominated economies are re-examining how the globalized world should / can be regulated in their regions. Instead of banning ICOs, other countries continue to recognize the technological benefits of cryptocurrencies and are looking at market control without completely stifling currency development. The big issue for these economies is to figure out how to do this, as the alternative nature of cryptocurrencies does not allow them to be classified in traditional investment property policies.
Some of these countries include Japan, Singapore and the US. These economies seek to establish accounting standards for cryptocurrencies, in particular to tackle money laundering and fraud, which have become more elusive due to encryption technology. However, most regulators recognize that there seems to be no real benefit to completely banning cryptocurrencies due to the financial flows they carry. Also, probably because it is virtually impossible to close the crypt-world for as long as the internet is there. Regulators can only focus on areas where they may be able to exercise some control, which seems to be the case when cryptocurrencies meet fiat currencies (ie cryptocurrency exchanges).
While cryptocurrencies seem to be subject to more scrutiny as time goes on, such events benefit some countries such as Hong Kong. Since the Chinese ICO ban, many founders of cryptocurrency projects have been driven from the mainland to the city. Aurelian Menant, Managing Director of Gatecoin, said the company received "a large number of inquiries from proprietors based in the mainland" and that there was a noticeable increase in the number of Chinese customers registering on the platform.
Looking a little further, companies like Nvidia have expressed a positive attitude towards the event. They argue that this ICO ban will only fuel GPU sales, as the ban will likely increase the demand for cryptocurrency-related GPUs. With the ban, the only way to get cryptocurrencies extracted with GPUs is to extract them with computing power. As a result, people who want to gain cryptocurrencies in China now need to gain more computing power, as opposed to making direct purchases through exchanges. In essence, Nvidia's feelings are that this is not a downward spiral for cryptocurrencies. in fact, other industries will also gain momentum.
In the light of all the turmoil and discussions around cryptocurrencies, the integration of technology into global economies seems to be in a hurry. Whether or not you believe in the future of technology or think it's a "scam … that will blow up", the encryption shield is worth a look.