What will happen to the cryptocurrency world after the ICO ban in China?
The biggest event in the world of cryptocurrencies is the Chinese authorities' announcement of the closure of cryptocurrency transactions. Therefore, BTCChina is one of the largest bitcoin exchanges in China, indicating that it will stop trading activities at the end of September. The news triggered a sharp sell-off, causing Bitcoin [and other currencies such as Etherium] to plummet about 30%, lower than the historical high reached earlier this month.
Therefore, the cryptocurrency roller coaster continues. As bitcoin grew more than four times from December 2016 to September 2017, some analysts predict that cryptocurrencies will recover from the recent decline. IG market analyst Josh Mahoney commented that "the past experience of cryptocurrencies tells us that they may put these latest challenges aside."
However, these emotions are not without objections. Mr. Dimon, CEO of JPMorgan Chase, said that Bitcoin "will not work" and that "it is a fraudulent act... worse than tulip bulbs" [see the 17th century Dutchman's ' The Tulip Mania is considered to be the world's first speculative bubble... that will explode. He said he would fire the stupid employees who traded Bitcoin.
Putting aside the guess, what happened? Since the Chinese ICO ban, other world-leading economies are re-examining how the cryptocurrency world should/can be regulated in its region. Other countries are not banned from ICO, but still recognize the technological advantages of encryption technology and are considering controlling the market without completely curbing monetary growth. The biggest problem facing these economies is figuring out how to do this because the alternative nature of cryptocurrencies does not allow them to be classified as traditional investment assets.
Some of these countries include Japan, Singapore and the United States. These economies are trying to establish accounting standards for cryptocurrencies, primarily to deal with money laundering and fraud, and make them more elusive due to encryption technology. However, most regulators do recognize that the complete ban on cryptocurrencies does not seem to have any real benefit due to the economic flows they bring. In addition, it may be impossible to turn off the encrypted world as long as the Internet exists. Regulators can only focus on areas where they may be able to control, which seems to be where cryptocurrencies are in compliance with fiat currencies [ie cryptocurrency exchanges].
Although cryptocurrencies appear to be subject to more rigorous scrutiny over time, these events do benefit some countries such as Hong Kong. Since the Chinese ICO ban, many founders of cryptocurrency projects have been rushed from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said that the company received a large number of inquiries from the founders of the mainland blockchain project and that there has been an observable increase in the number of Chinese customers registered on the platform.
Further, companies like Nvidia expressed a positive attitude towards the event. They claim that the ICO ban can only drive their GPU sales because the ban may increase the demand for cryptocurrency-related GPUs. By ban, the only way to get cryptocurrencies using GPU mining is to mine them with computing power. Therefore, individuals who wish to obtain cryptocurrencies in China must now acquire more computing power than purchase directly through the exchange. Essentially, Nvidia's point of view is that for cryptocurrencies, this is not a downhill spiral; in fact, other industries will be promoted.
In view of all the turmoil and controversy surrounding cryptocurrencies, the integration of technology into the global economy seems to be rushing. Whether you believe in the future of the technology or think it is "fraud...it will explode", the cryptocurrency roller coaster deserves your attention.
Orignal From: Rocky Road to Encrypted Currency: China's ICO Ban
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