Is The Future Still Bright For Bitcoin?

Bitcoins have been the topic of conversation within the investment world for quite some time now, building in value and flirting with the mainstream in a seemingly unstoppable rise. All of that came to an uncomfortable halt over the past few weeks however in a series of events that have led many to question whether or not the cryptocurrency is still the leading name in the future of financial assets. 

Worrying news from China 

The major concerns started when Chinese authorities released a statement in early September that deemed raising funds through initial coin offerings (ICOs), unlawful. They claimed this was part of their ongoing efforts to increase financial and social security for consumers, stating that the unregulated manner of crowdfunding via ICOs comes with too much risk. With China being such a significant player in the realm of cryptocurrencies, such decisions are always likely to have a ripple effect that will be felt the world over, and that has indeed been the case. The value of Bitcoins plummeted for the first time in months, as did several other forms of cryptocurrency, with much confusion and mixed messages from Chinese regulatory agencies leading some to even fear the possibility of an eventual blanket ban on all forms of cryptocurrency in the country. 

The fallout 

Soon after the announcement, BTCC, one of China’s biggest and best-known Bitcoin exchanges, announced that with immediate effect, they would no longer be accepting new accounts, before ceasing all trading on 30th September of this year. 

It certainly didn’t help those trying to calm the situation when, around the same time, the Financial Conduct Authority, a UK watchdog, published a statement warning consumers about the risks of ICOs, mirroring many of the concerns raised by their Chinese counterparts and thus suggesting the notion that perhaps crackdowns could start hitting our shores too in the not so distant future.