With the world’s largest population and a rapidly-developing economy, China is perhaps the most important country for the long-term prospects of crypto currencies such as Bitcoin. China’s low energy costs have made it the world center of Bitcoin mining, but the governments uneven stance toward this new technology has caused massive fluctuations in Bitcoin’s value. On September 2, 2017, Bitcoin hit an all-time high of $5,000.
From crypto currency payments for music artists to enterprise-level security, the block-chain startup sector Is exploding with activity. As more startups consider the potential of ICOs (initial coin offerings) to raise investor funding for their companies, expect to see even more growth happening within this sector. Micropayments? Click to read more posts about mobile pay.
To say the block-chain startup sector is hot right now just might be the understatement of the decade. When a block-chain startup raises $25 million in 15 minutes through an ICO (initial coin offering), you know the sector is heating up. Everyone from angel investors and venture capitalists to stock traders and entrepreneurs are taking notice of the massive shift towards block-chain-based financing and company development. As more entrepreneurs realize the potential of funding their companies via cryptocurrencies there is an explosion of activity happening within the block chain sector. Looking for ecash opportunities?
The price tumbled almost immediately, then collapsed to $3,018 on September 15 as China announced it was banning all Initial coin offerings (ICOs) and suspending trading on all Bitcoin exchanges. While many observers initially thought China’s new stance may mean the long-predicted bursting of the Bitcoin bubble, Bitcoin’s value recovered quickly and began trending upward again immediately after the dip.
Bitcoin’s value recovered quickly and began trending upward again immediately after the dip. again immediately after the dip. Some believers in Bitcoin’s potential to become a truly border-less currency beyond any government’s control cheered this development, thinking that China had shown they held this development, thinking that China had shown they held less long-term influence over Bitcoin than many thought. However, the recovery in Bitcoin’s price doesn’t necessarily mean that the Chinese government has no Influence over Its value. Instead, it night mean that many Bitcoin investors are confident that China is planning to continue supporting crypto currency, despite measurements the government has taken against it.
With its unique mix of free-market capitalism and centrally-planned economics, China’s attitude toward Bitcoin often seems contradictory to outside observers. Here are the most important things to understand about the Chinese government's position on crypto currencies. Initial Coin Offerings The Chinese crackdown on crypto currency in September 2017 began with an outright ban on ICOs.
ICOs had been generating a lot of hype in the financial world and many investors were rushing to get on board, throwing money at a lot of ICOs with a ‘spray and pray’ strategy. Some of the lot of ICOs with a ‘spray and pray’ strategy. Some of the ICOs will lead to nothing, while others might make huge gains and offset any losses investors make using this haphazard strategy. This bullish attitude has made ICOs fertile ground for scammers. While initial public offerings (IPOs) of stock are tightly regulated, virtually anyone can set up an ICO with no real business plan behind it. All that’s needed Is a white paper outlining plans for the future growth of the company offering the ICO.
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