What's coming to the world of cryptocurrencies after China's ICO ban?
The biggest event in the cryptocurrency world recently was the announcement of Chinese authorities to close the exchanges where cryptocurrency trades. As a result, BTCChina, one of China's largest bitcoin exchanges, said it would stop trading until the end of September. The news prompted a sharp sale of bitcoin (and other currencies, such as Etherium), which fell nearly 30% lower than the previous month's record prices.
So the cryptocurrency rollercoaster continues. With Bitcoin surpassing its value by four times from December 2016 to September 2017, some analysts predict that cryptocurrencies will recover soon. Josh Mahoney, a market analyst at IG, cryptocurrencies comments for. "Past experience tells us (they) will probably put aside these recent challenges," he said.
But these ideas do not come without opposition. Mr Dimon, CEO of JPMorgan Chase, noted that bitcoin was "inoperative" and that it was "worse … than tulip bulbs" (referring to the Netherlands tulip mania & # 39; accepted as the world's first speculative foam) The 17th century … "explodes." It is too early to say that Bitcoin will fire employees who are stupid enough to trade.
The assumption is aside, what is actually going on? Since China's ICO is banned, leading economies in the rest of the world are taking a fresh look at how the cryptocurrency world can be regulated. Instead of banning ICOs, other countries are still recognizing the technological benefits of cryptocurrency and looking to control the market without obstructing the growth of currencies. The big problem for these economies is understanding how this will happen, because alternative nature does not allow cryptocurrencies to be classified under traditional investment asset policies.
Some of these countries include Japan, Singapore and the United States. These economies are trying to set up accounting standards for cryptocurrencies, especially for cryptocurrencies, with the goal of laundering money and laundering more dirty money. However, most regulators recognize that cryptocurrency is not a real benefit to the full ban because of the economic flows they carry. Also, since it is virtually impossible to close the cryptocurrency when the Internet is available. Regulators can focus only on areas where they can exercise some control, which is in line with the visible cryptocurrencies fiat currencies (ie cryptocurrency exchanges).
Although cryptocurrencies have become more and more controlled over time, such events have benefited some countries, such as Hong Kong. Since the Chinese ICO ban, the founders of many cryptocurrency projects have moved from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said the company had "received a large number of inquiries from mainland blockchain project developers" and said there was an increase in the number of Chinese customers registered on the platform.
Looking a little further, companies like Nvidia have shown a positive response from the measure. They claim that the ICO ban will only increase GPU sales because the ban will likely increase demand for GPUs related to cryptocurrency. With the ban, the only way to get cryptocurrency mined with GPUs is to mine mine with computing power. Thus, those who want to acquire cryptocurrency in China now have more computing power than do direct purchases through exchanges. In fact, Nvidia's view is that it is not a downward spiral for cryptocurrencies; In fact, other industries will also give a boost.
In light of all the fears and debates about cryptocurrencies, the integration of technology into the global economy is gaining momentum. Cryptocurrency rollercoaster deserves your attention if you believe in the future of technology or think it's a "blast" scam.