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The largest event in the cryptocurrency world lately was the announcement of the Chinese government to shut down the exchanges on which cryptocurrencies are traded. Because of this, BTCChina, among the greatest bitcoin exchanges in China, stated it would be ceasing trading activities by the end of September. This news catalysed a sharp sell-off that left bitcoin (and other monies like Etherium) plummeting approximately 30 percent below the record highs that were reached earlier this month.
So, the cryptocurrency rollercoaster continues. With bitcoin having raises that transcend quadrupled values from December 2016 to September 2017, some analysts forecast that it can cryptocurrencies can recover from the current drops. Josh Mahoney, a market analyst in IG remarks that cryptocurrencies'”past experience tells us that [they] will probably brush these latest challenges apart”.
But these sentiments do not come without resistance. Mr Dimon, CEO of JPMorgan Chase, commented that bitcoin”is not going to work” and that it”is a fraud… worse than tulip bulbs (with regard to the Dutch’tulip mania’ of the 17th century, recognised as the world’s first speculative bubble)… which will blow up”. He goes to the extent of stating that he would fire workers who were dumb enough to trade in bitcoin.
Speculation aside, what’s actually going on? Since China’s ICO ban, other world-leading markets are taking a new look into how the cryptocurrency world should/ could be controlled in their areas. As opposed to banning ICOs, other countries still recognise the technical advantages of crypto-technology, and are considering dominating the marketplace without completely stifling the development of the currencies. The significant issue for these markets is to work out the way to do so, since the alternative nature of this cryptocurrencies don’t allow them to be categorized under the policies of traditional investment resources.
Some of the countries include Japan, Singapore and the United States. These economies want to establish accounting standards for cryptocurrencies, mainly so as to take care of money laundering and fraud, which have been left more elusive as a result of crypto-technology. However, most regulators do recognise that there appears to be no real advantage to completely destroys cryptocurrencies on account of the financial flows that they take along. Also, probably because it’s practically impossible to shut down the crypto-world for so long as the internet exists. Regulators can only concentrate on areas where they might have the ability to exercise some control, which appears to be where cryptocurrencies meet fiat currencies (i.e. the cryptocurrency exchanges).
While cryptocurrencies appear to come under more scrutiny as time advances, such events do gain some countries such as Hong Kong. Considering that the Chinese ICO ban, many founders of cryptocurrency jobs are driven from the mainland into the city. Aurelian Menant, CEO of Gatecoin, stated that the company received”a large number of inquiries from blockchain project founders based from the mainland” and that there was an observable surge in the amount of Chinese customers registering on the stage.
Looking slightly further, companies like Nvidia have expressed positivity from the function. They assert that this ICO ban is only going to fuel their GPU sales, since the ban will probably increase the demand for cryptocurrency-related GPUs. With the ban, the only way to acquire cryptocurrencies mined with GPUs would be to mine with computing power. As such, individuals seeking to get cryptocurrencies in China have to acquire more computing power, instead of making straight purchases through exchanges. Essentially, Nvidia’s sentiments is that this is not a downhill spiral for cryptocurrencies; in actuality, other industries will be given a boost also.
In light of all of the commotion and disagreement surrounding cryptocurrencies, the integration of this technology to the global economies appear to be materialising hastily. Whether you believe in the future of this technology, or think it is a fraud…