China’s ICO ban and Jamie Dimon’s negative comments on cryptocurrencies have led to volatility in the markets. Members of the industry react to the movement.
Rob Viglione is the cofounder of ZenCash, a private and distributed platform for communications, transactions and publishing.
“News that BTCChina, the fifth-largest bitcoin exchange, plans to discontinue trading on Sept. 30th. is the crescendo in a wave of negative information that is weighing heavily on cryptocurrency markets. This comes after a recent regulatory ban in China of ICOs and JPMorgan’s Jamie Dimon calling bitcoin a ‘fraud’ that is set to ‘blow up’.
“Already, we’ve seen about $60 billion in value wiped from the peak earlier this month, but there is a silver lining that may be hard to see through the clouds: Regulators are starting to provide some clarity, and even if new rules aren’t ideal, they’re better than the uncertainty of potentially inferior regulation.
“The big question is whether this shock is already internalized into asset prices, or if there’s risk of a continued cascading sell-off. One good thing about crypto markets is that they are largely equity-based, and not massively interconnected webs of leveraged derivatives with unknown counterparties, as is the norm in modern banking. The China ICO ban and the cessation of trading certainly have deep initial impact to prices, but also a much smaller marginal contribution to systemic risk than we’re used to seeing from large financial institutions, like Dimon’s JPMorgan.
Bharath Rao is the CEO of Leverj, a decentralized platform for cryptocurrency derivatives trading
“For those of us in the exchange space, the possibility of governments clamping down on exchanges is a foregone conclusion ever since bitcoin was first noticed by the government. Bitcoin’s price has dropped to $3,500 amid news of the BTCChina exchange shutdown. The price is always a solid metric of the markets’ greed and fear, and reflects regulatory uncertainty at the moment. This also signals that development of non-custodial and decentralized models will accelerate.
“Regulation is neither necessary nor possible for decentralized models, and the future may have gotten just a bit brighter by nudging the crypto community to develop high speed, non-custodial exchanges.”
“The value proposition of bitcoin and the crypto ecosystem is that it is provably compliant with its own rules. The confidence that the rules of the system are mathematically infeasible to break brings a strong confidence in participation and more importantly, obsoletes the need for intrusive regulation.
“The price of bitcoin in particular and the sustained increase in market cap of crypto in general is simply the general public waking up to this amazing value proposition of replacing proof of violence with proof of work. Crypto will eventually be a very large part of global finance as entrepreneurs figure out how to extend the robust properties of crypto into other areas of finance.
These are the very first rays of light on the dawn of a new era, the beginning of the beginning. The ones who have the vision and courage to step in and shape the future will be handsomely rewarded and those who shudder and fear this unstoppable force are choosing to be obsolete with their archaic systems.
Jason English, is the VP of Protocol Marketing at Sweetbridge, a global alliance that aims to use blockchain to create a liquid supply chain
“China is practically building a cottage industry for mining and exchanging bitcoin and other cryptocurrencies, so it is hard to believe that they intend to exit a market with so much potential upside. Even the apparent ban on ICOs seemed to be more of a stopgap in order to get some policies in place. If anything, this example shows the volatility of the space and that some market-makers can likely take advantage of an unclear news cycle to create a sell-off and buy back opportunity.
Scott Nelson is the CEO and Chairman of Sweetbridge
Bitcoin may be a bubble and it may be replaced in the future by other cryptocurrencies. But comments like Jamie’s show a failure to grasp the significance of the blockchain and the power of brand in a fundamental sea of change.
I seem to remember people making similar comments about Facebook when it had no revenue. The value of Bitcoin is not intrinsic to the coin it is in what it allows us to do. Freedom is not going away no matter how hard people wish it would.
Like this article? Take a second to support us on Patreon!