On the wake of China's ICO ban, what befalls the world of cryptocurrencies?

The biggest event in the cryptocurrency world recently was the declaration of the Chinese authorities to shut down the transactions on which cryptocurrencies are traded. As a result, BTCChina, one of the largest sized bitcoin exchanges in China, said that it would be ceasing forex trading activities by the end of September. This news catalysed a sharp sell-off that left bitcoin (and other currencies which include Etherium) plummeting approximately 30% below the record highs have got reached earlier this month.

So , the cryptocurrency rollercoaster keeps. With bitcoin having increases that surpass quadrupled areas from December 2016 to September 2017, some experts predict that it can cryptocurrencies can recover from the newly released falls. Josh Mahoney, a market analyst at IG opinions that cryptocurrencies' "past experience tells us that [they] will likely brush these latest challenges aside".

Yet , these sentiments don't come without opposition. Mr Dimon, CEO of JPMorgan Chase, remarked that bitcoin "isn't going to work" and that it "is a fraud... worse yet than tulip bulbs (in reference to the Dutch 'tulip mania' of the 17th century, recognised as the world's first of all speculative bubble)... that will blow up". He goes to the very extent of saying that he would fire employees who were mindless 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, several other countries still recognise the technological benefits of crypto-technology, and are generally looking into controlling the market without completely stifling the growth belonging to the currencies. The big issue for these economies is to figure out how to make it happen, as the alternative nature of the cryptocurrencies do not allow them to get classified under the policies of traditional investment assets.

Examples of these countries include Japan, Singapore and the US. These financial systems seek to establish accounting standards for cryptocurrencies, mainly so that they can handle money laundering and fraud, which have been rendered a great deal more elusive due to the crypto-technology. Yet, most regulators do acknowledge that there seems to be no real benefit to completely banning cryptocurrencies due to the economic flows that they carry along. Also, in all probability because it is practically impossible to shut down the crypto-world for as long as the online market place exists. Regulators can only focus on areas where they may be able to activity some control, which seems to be where cryptocurrencies meet beatle 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 been driven from the mainland to the city. Aurelian Menant, CEO of Gatecoin, said that the company received "a high number of inquiries from blockchain project founders headquartered in the mainland" and that there has been an observable surge on the number of Chinese clients registering on the platform.

Looking just a bit further, companies like Nvidia have expressed positivity on the event. They claim that this ICO ban will only supply their GPU sales, as the ban will likely increase the with regard to cryptocurrency-related GPUs. With the ban, the only way to obtain cryptocurrencies mined with GPUs is to mine them with computing power. That way, individuals looking to obtain cryptocurrencies in China now have to obtain more computing power, as opposed to making straight purchases via geneva chamonix transfers. In essence, Nvidia's sentiments is that this isn't a downhill spiral just for cryptocurrencies; in fact , other industries will receive a boost as well.