Cryptocurrency bounced back despite ICO’s ban by China: Ethereum, BitCoin & LiteCoin:
On 4 Sept 2017, a joint statement was made by seven Chinese government agencies including PBoC (Peoples Bank of China), china securities regulatory commission & the china banking regulatory commission which stated all companies & individuals are banned from raising funds through ICO’s.
Because of this ban, cryptocurrency suffered major blow especially on 5 sept that caused the price drop easily between 10 % to 20%. Ethereum was sharply crashed at the fall of almost 20% on the day at $283. Bitcoin was also down 8 %. Its market capital value crashed by 10%.
The price of bitcoin fell below $4400 mark which later fell to nearby $4000. now the price of one bitcoin is US$4602.2205. Litecoin gained +10% & is at price of $81.860. Based upon this ban on ICO & price drop, many people were predicting more price drop. Now the price of one bitcoin is US$4602.2205. Ethereum price gained 10% to reach the mark of $300.
According to Chinese agencies the ban on ICO’s was because it is unregulated, prone fraudulent schemes, contains scams & disturbs economic system & is extremely volatile. However, Hong Kong allows the ICO’s to operate without many strict restrictions thus making it ICO’s heaven. Despite the ban on ICO’s by china, the surge in cryptocurrency indicates the interest, trust of people investing in cryptocurrency & its growing importance which led to its future significance. As Ivey business school professor & cryptocurrency researcher JP Vergne stated :
“We found that the best prediction of cryptocurrency’s exchange rate is the amount of development activity around it .”
Ethereum is scaling up its platform so that its transaction becomes faster & processing fee is charged less. In fact, many financial institutes like investment banks like Goldman Sach is investing in blockchain currency technology.
Six of the world’s largest banks like – Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG, and State street – are signing up to a new digital currency. Expected to launch next year, the utility settlement coin; will not be pitched as competition to bitcoin but will coexist & help the bank to develop blockchain technology necessary to boast the transparency & exact recordkeeping they want for financial transaction.
Some cryptocurrencies are being developed & while some are going to get modified so that crypto coins we be awarded to people who contribute to the open source, generate value & do value addition to the system . it is a very interesting concept & idea. People who contribute will get what deserve based upon valley addition to the world, Many people had contributed positively to the world but were failed at generating personal wealth like Nikola Tesla.
I personally think blockchain technology is absolutely amazing & is not only used in cryptocurrency but can be used at a wide spectrum of the field of problem-solving including tracking of items (Walmart is started using it ), optimistic distribution in decentralized system etc. Cryptocurrency needs to become more transparent & its process should more optimise so that processing fee should as cheap as possible. Comment down below your queries & opinions regarding cryptocurrency, Bitcoin and more.
(Also read from the author: Cryptocurrency Falls Sharply as China Banned ICO’s)
Article By Rohit Sangale [email protected]