Cryptocurrencies were one of the topics discussed at the World Economic Forum held in Davos, Switzerland. Top business and financial leaders attending the event slammed Bitcoin while praising blockchain – the technology that allowed cryptocurrency to flourish. An exclusive session was officially dedicated to discussing Bitcoin at the Forum. There was also a space titled Crypto HQ which highlights blockchain technology.
According to the Bank of Canada governor Stephen Poloz, bitcoin has no value: “There is no intrinsic value for something like bitcoin so it’s not really an asset one can analyze. It’s just essentially speculative or gambling.”
Robert Shiller, a Nobel-Prize winner in the field of economics, claims that though bitcoin may still be present for a century, it has the possibility to collapse. “(Bitcoin) might totally collapse and be forgotten and I think that’s a good likely outcome but it could linger on for a good long time, it could be here in 100 years.”
Bitcoin is still popularly known as a currency that is utilized to conduct illegal activities. International Monetary Fund managing director, Christine Lagarde, similarly expressed her views on bitcoin: “The fact that the anonymity, the lack of transparency and the way in which it conceals and protects money laundering and financing of terrorism and all sorts of dark trades is just not acceptable.”
However, bitcoin supporters declared their positive views on the digital currency. According to Richard Muirhead, Fabric Ventures’ general partner, “We are still not in the kind of dotcom bubble territory in terms of the overall market capitalization.”
Co-founder of the cryptocurrency wallet Blockchain, Nic Cary, offers an optimistic outlook on the digital currency. He explained, “You have to look at the fundamentals..To us, we are seeing increases in transaction volume and to me that’s one of the first indicators that more people are using this in their daily lives and that’s really interesting to me.”
Bitcoin’s price increased the past year despite its difficult start. Currently, cryptocurrency is 21 percent down since January 1 of this year.