Not all that long ago, rumors that Chinese authorities would make it illegal for citizens and residents to trade Bitcoin and other cryptocurrencies on online exchanges were circulating. In the blink of an eye, all of those rumors became fact. The Chinese government announced that they would officially enact the aforementioned ban, and that it would additionally ban any new ventures from putting forth initial coin offerings to raise money.
In the initial wake of the ban’s official announcement, prices of all cryptocurrencies took a hit. This was unsurprising seeing as China represents a large, large portion of global cryptocurrency users. There were some who thought that cryptocurrencies might have finally seen their final days, but such has not been the case as the cryptocurrency world has shown its ability to take a hit and keep moving. Without any single centralized authority, a ban in one country represents an opportunity elsewhere.
In the last few months, we have seen start-up after start-up be put on hold because they were going to market to Chinese citizens in hopes of raising money for themselves. From online development platforms, to online casinos, and even a start-up dealing in augmented reality, there is story after story of planned operations being put on hold thanks to the Chinese ban. In many other settings—ones not dealing with cryptocurrencies—a ban such as this one would mean the end of things.
When it comes to the start-ups mentioned above, however, the Chinese ban seems like it is going to be nothing more than an inconvenient hiccup. After all, these companies can simply shift their attention to markets such as Japan, South Korea, or even the United States to raise the funds they are looking to raise.
Sure, it may take a bit longer and may be an entirely different situation than the one that was planned for, but with minimal effort the start-up can still…start up. This is shaping up to be a good story and not as big of a disaster as some hypothesized it might be, but it speaks volumes for cryptocurrencies as a whole.
When it comes down to it, the events that have unfolded over the past few months prove the viability of Bitcoin and other cryptocurrencies in the ever-changing modern world we live in. Blockchain technology has proven its worth and is showing the world why it has again and again been heralded a massive modern innovation.
In the words of Ken Sangha, COO of San Francisco-based Open Money and the Open Project:
“The ethos behind blockchain has been tested. A central, organized and powerful authority — China — said ‘no’ and we all have been tested worldwide because of it. But the system flexed its muscles. It’s doing what it was supposed to do.”
This story is far from complete, but it has thus far been an unlikely tale of success. Whether or not this will truly resonate with the world remains to be seen, but the early indications are positive.
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