Cryptocurrency’s Rocky Road: China’s ICO Ban

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

The most significant event in the cryptocurrency community recently was the declaration of the Chinese authorities to turn off the interchanges where cryptocurrencies are traded. As a result, BTCChina, among the biggest bitcoin exchanges in China, said that it will be ceasing trading activities by the tail end of September. This info catalysed a sharp sell off that left bitcoin (and some other currencies such as Etherium) plummeting approximately 30 % below the record highs which were attained before this month.

And so, the cryptocurrency rollercoaster carries on. With bitcoin having increases which usually surpass quadrupled values from December 2016 to September 2017, several analysts predict it is able to cryptocurrencies can recover from the recent falls. Josh Mahoney, a sector analyst at IG responses which cryptocurrencies’ “past experience shows us that [they] will probably brush these latest issues aside”.

However, these sentiments don’t come without opposition. Mr Dimon, CEO of JPMorgan Chase, remarked bitcoin “isn’t gon na work” which it “is a fraud… even worse compared to tulip bulbs (in reference to the Dutch’ tulip mania’ of the 17th century, recognised as the world’s first speculative bubble)… that will blow up”. He goes to the amount of saying that he will fire people that were stupid enough to trade in bitcoin.


Speculation aside, what’s actually going on? Since China’s ICO ban, other world leading economies are going for a fresh look into the way the cryptocurrency world should/ might be controlled in the areas of theirs. As an alternative to banning ICOs, other countries still recognise the technological great things about crypto technology, and are looking at controlling the industry without totally stifling the growth of the currencies. The main issue for these economies is to figure out the way to do this, as the answer design of the cryptocurrencies don’t permit them being categorized under the policies of conventional investment assets.

Several of these countries include Japan, Singapore and also the US. These economies seek out to set accounting expectations for cryptocurrencies, mainly in order to tackle fraud and money laundering, which have most certainly been made more elusive because of the crypto technology. Nonetheless, the majority of regulators do recognise that there appears to be no real positive to fully banning cryptocurrencies as a result of the economic flows that they carry along. Also, probably because crypto trading signals Telegram 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 might be able to exercise some control, that typically seems to be where cryptocurrencies fulfill fiat currencies (i.e. the cryptocurrency exchanges).

While cryptocurrencies seem to come under a lot more scrutiny as time progresses, such gatherings do profit some countries as Hong Kong. Since the Chinese ICO ban, lots of founders of cryptocurrency projects have been driven from the mainland on the city. Aurelian Menant, CEO of Gatecoin, said that the company received “a high amount of requests from blockchain project founders dependent in the mainland” which there has been an observable huge increase in the number of Chinese customers registering on the platform.

Looking somewhat further, companies like Nvidia have conveyed positivity from the occasion. They report that this particular ICO ban is only going to fuel their GPU sales, as the ban will probably increase the need for cryptocurrency related GPUs. With the ban, the only way to obtain cryptocurrencies mined with GPUs is to mine them with computing power. Therefore, folks looking to acquire cryptocurrencies in China now must obtain more computing power, instead of creating straight purchases via switches. Basically, Nvidia’s sentiments is this is not a downhill spiral for cryptocurrencies; in reality, many other industries will get a boost too.

In light of all the commotion and debate surrounding cryptocurrencies, the integration of the science into the worldwide economies appear to be materialising hastily. Whether you think in the future of the technology, and believe that it’s a “fraud… that will blow up”, the cryptocurrency rollercoaster is but one well worth your attention.

In the wake of China’s ICO ban, what befalls the world of cryptocurrencies? The most significant event in the cryptocurrency community recently was the declaration of the Chinese authorities to turn off the interchanges where cryptocurrencies are traded. As a result, BTCChina, among the biggest bitcoin exchanges in China, said that it will be ceasing…

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