Ever since the announcement of made by the Chinese officials, the crypto market has been taking the blow. We have seen all the token crash heavily. Could this be the end? or is this just the hit to bounce higher than what the prices were?
What exactly happened:
A few days back, China announced that the ICO's be banned. Following the ICO ban news came the ban on trading Bitcoin and then came the exchanges ban.
When the ICO ban came into the picture, the prices of the tokens were seen going down. The top tokens like Neo, Hshares and other Chinese token degraded in value. With that, there were other tokens that took the blow too. BTC and others also had seen the red. But a few days after the ICO ban, we saw more of a green in the market. If was a quite a bit of a relief.
What followed after that was the announcement of the Bitcoin and the exchange ban. That created a chaos into the people's mind. People in China are now in a panic stage and have been selling what they invested. This has created the red effect in the market. The value of the tokens has come down drastically.
Will this last long:
We can say how long this will last, but what we can say is that this won't last forever. As you can never predict the outcome in a short run, we cannot either. We can only speculate on the past references.
This won't last long as China has tried doing this many times. Even if this is Chinese effect, there are other countries too. There are a large proportion of users in the rest of the world. It's not just China that uses the crypto currency. If China was the only one using Bitcoin and other Crypt currency, the market would have crashed 100% after the ban.
What could China Do:
Even though the Chinese have banned the ICO's, remember that it is only a temporary ban. What we can infer from this is that the Government wants to regulate the ICO's. The govt may be keeping in mind that crypto currencies are the way to future. And because of this, the government will probably want to regulate certain aspects of the safety of the investors.
There are a lot of scams that are going around and it is unsafe for the investors. This calls for safety. The government, in order to implement safety, could do the followings.
Ask the ICO's to submit the documents and get registered in the act.
Decide if the company should start the ICO
Check what value the company provides
How it creates wealth for the investors. (may not be important)
Regulate how much the investors invest.
There could be many more regulations that could be implemented. We don't know. Unless someone leaks the insiders.
What is the future of the Cryptos:
The future is very clear. We know that this is going to help the world do wonder. There will be increased usage of the crypto in the future. And the value of the token may soar up in the course of time. We could expect giant tech companies coming up with their own tokens. We could see our local vendor accept digital currency for our grocery. And there are cryptos like Monaco, tenx that allow you to use the token in the real world with their unique debit cards.
Negative Sides:
With some tokens being untraceable and anonymous, this could give rise to more and more illegal activities like exchanging drugs, weapons and many other things. This is also the reason why the government is worried about the usage of anonymous tokens.
All in all, the world of crypto is one of the ways the world will interact in the near future.
Author: @manishmike10
