After the implementation of the ICO ban in China, where will the world of cryptocurrencies flow?
Recently, the biggest event in the world of cryptocurrency was the Chinese authorities’ announcement to close the exchange of cryptocurrency. Therefore, BTCChina, one of China's largest bitcoin exchanges, said it will stop trading activities by the end of September. The news sparked a sharp sell-off, causing Bitcoin [and other currencies, such as the Ethereum] to plummet to about 30% below the record high set earlier this month.
Therefore, the cryptocurrency roller coaster continues. From December 2016 to September 2017, Bitcoin has risen more than fourfold, and some analysts predict that Bitcoin will allow cryptocurrency to recover from the recent decline. IG market analyst Josh Mahoney commented that "the past experience of cryptocurrencies tells us that [they] may exclude these latest challenges."
However, these emotions are not without objections. Mr. Dimon, CEO of JPMorgan Chase, said Bitcoin “doesn’t work” and “is a fraud… worse than a tulip bulb [referring to the 17th century Dutch ' tulip mania Zheng & #39;, the world's first speculative bubble] … will explode. He can say that he will fire employees who are stupid enough to trade Bitcoin.
In addition to guessing, what is going on? Since China banned ICO, other world-leading economies are re-examining how/should be regulating the world of cryptocurrencies in their regions. In addition to the ban on ICO, other countries still recognize the technological advantages of encryption technology and seek to control the market without completely curbing monetary growth. The biggest problem with 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 seek to establish accounting standards for cryptocurrencies, primarily to deal with money laundering and fraud, which are becoming more elusive due to encryption techniques. However, most regulators do realize that there is no real benefit to completely banned the use of cryptocurrencies due to the economic traffic carried. In addition, it may be because it is almost impossible to turn off the encrypted world as long as the Internet exists. Regulators can only focus on areas where they can exercise some control, which seems to be where cryptocurrencies meet legal tenders [ie cryptocurrency exchanges].
Although cryptocurrencies seem to be subject to more scrutiny over time, such incidents have indeed benefited some countries such as Hong Kong. Since the Chinese ICO ban, many creator of cryptocurrency projects have been expelled from the mainland to the city. Gatecoin CEO Aurelian Menant said the company "received a large number of inquiries from the founders of the blockchain project from the mainland" and that the number of Chinese customers registered on the platform has increased significantly.
Looking further ahead, companies like Nvidia have affirmed this event. They claim that the ICO ban will only stimulate their GPU sales, as the ban may increase the demand for GPUs associated with cryptocurrencies. With the ban, the only way to get cryptocurrencies mined using GPUs is to use computing power to mine. Therefore, as opposed to direct purchases on exchanges, individuals wishing to obtain cryptocurrencies in China must now gain more computing power. In essence, Nvidia's point of view is that this is not the downhill path of cryptocurrency. In fact, other industries will also grow.
Given all the embarrassment and controversy surrounding cryptocurrencies, the integration of this technology into the global economy seems to be rapidly realizing. Whether you believe in the future of the technology or whether it is "fraud…it will explode", the cryptocurrency roller coaster is a place worthy of your attention.