Cryptocurrency’s Rugged Highway: China’s ICO Exclude

Hướng dẫn mua Bitcoin ở nơi an toàn uy tín mới nhất 2020

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

The largest event in the cryptocurrency world recently was the declaration of the Chinese authorities to shut down the exchanges on which cryptocurrencies are traded. Consequently, BTCChina, one of many largest bitcoin exchanges in China, said so it could be ceasing trading activities by the conclusion of September. This news catalysed a sharp sell-off that left bitcoin (and other currencies such as for example Etherium) plummeting approximately 30% below the record highs which were reached earlier this month.

So, the cryptocurrency rollercoaster continues. With bitcoin having increases that surpass quadrupled values from December 2016 to September 2017, some analysts predict so it can cryptocurrencies can recover from the recent falls. Josh Mahoney, a market analyst at IG comments that cryptocurrencies'”past experience tells us that [they] will more than likely brush these latest challenges aside “.

However, these sentiments don’t come without opposition. Mr Dimon, CEO of JPMorgan Chase, remarked that bitcoin “isn’t going to work” and so it “is just a fraud… worse than tulip bulbs (in mention of the the Dutch’tulip mania’of the 17th century, recognised since the world’s first speculative bubble)… that may blow up “.He goes to the extent of saying that he would fire employees who were stupid enough to trade in bitcoin.

Speculation aside, what’s 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, other countries still recognise the technological advantages of crypto-technology, and are considering controlling industry without completely stifling the growth of the currencies. The big problem for these economies would be to figure out how to achieve this, as the choice nature of the cryptocurrencies do not allow them to be classified beneath the policies of traditional investment assets.

Some of those countries include Japan, Singapore and the US. These economies seek to determine accounting standards for cryptocurrencies, mainly to be able to handle money laundering and fraud, that have been rendered more elusive as a result of crypto-technology. Yet, most regulators do recognise that there appears to be no real benefit to fully banning cryptocurrencies as a result of economic flows that they carry along. Also, probably because it’s practically impossible to shut down the crypto-world for as long as the internet exists mua bitcoin. Regulators can only just give attention to areas where they may be able to exercise some control, which appears to be where cryptocurrencies meet fiat currencies (i.e. the cryptocurrency exchanges).

While cryptocurrencies seem to come under more scrutiny as time progresses, such events do benefit some countries like Hong Kong. Since the Chinese ICO ban, many founders of cryptocurrency projects have now been driven from the mainland to the city. Aurelian Menant, CEO of Gatecoin, stated that the organization received “a high number of inquiries from blockchain project founders situated in the mainland” and that there has been an observable surge in how many Chinese clients registering on the platform.

Looking slightly further, companies like Nvidia have expressed positivity from the event. They claim this ICO ban will simply fuel their GPU sales, since the ban will more than likely boost the demand for cryptocurrency-related GPUs. With the ban, the only path to obtain cryptocurrencies mined with GPUs would be to mine them with computing power. As a result, individuals looking to obtain cryptocurrencies in China will have to obtain more computing power, in place of making straight purchases via exchanges. Essentially, Nvidia’s sentiments is this isn’t a downhill spiral for cryptocurrencies; in fact, other industries will get a boost as well.

In light of all commotion and debate surrounding cryptocurrencies, the integration of the technology to the global economies be seemingly materialising hastily. Whether or not you believe in the ongoing future of the technology, or think that it is a “fraud… that may blow up”, the cryptocurrency rollercoaster is one worth your attention.

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