How will Chinese Ban on ICOs Effect the Future of the Cryptocurrency Industry?

There is no immediate threat for the future of Bitcoin concering recent Bitcoin ban by China government. There is more than just one reason for that. At first, Bitcoin is stateless and almost every year China made similar moves. In the past these sorts of bans by Chinese government did not create many difficulties for the Bitcoin network. Second thing is that there are reasonable presumptions that this sort of politics can be only temporary.

Bitcoin network is too flexible to allow this sort of threats to create bad business climates. The second thing is that China banned its residents from creating startups. There are some positive aspects of it. There has been many startups – Initial Coin Offering that had no solid ground and that were developed with a sole purpose of pumping the investments and shutting down, leaving the organizers with hefty sums of cash. Considering that trend, the change in China policies can be justified. Still, there have been some hold-ups and withdrawals on the ICO market, since many of the investors were Chinese.

Other matter concerning this recent ban is that it is probably just temporary. There is no threat for Chinese currency yuan to be overpowered by any digital currency in the recent future. Also the Chinese economy, one of the greatest on Earth is hardly going to be in any threat by digital currency market as they are now. There are many years to come in which the Bitcoin network will rise enough to create immediate threat to China. Adoption of the Bitcoin must rise for very long until it could be the real danger for China. On the political terms, it is most probable that this type of move is strictly for popularity and appreciation of the more extreme communist party members toward the annual Congress.

Basically, the future of Bitcoin is not going to change much and if it changes it will most probably be on the short terms with no concern for any longer period of time. Still, there have been changes on the ICO market since the Chinese investors took great part in the development of that recent market. Most probable outcome will be just a minor set-back and in next few weeks things will continue as they were before.



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