Bitcoin was hammered by top establishment leaders at the World Economic Forum in Davos, but those in the cryptocurrency time had a message of their own.
Cryptocurrencies were one of the biggest topics at the Forum. There was an stiff session on it, CNBC ran a few panels about the subject in The Sanctuary, and there was round a dedicated spaced called Crypto HQ, which focuses on blockchain technology.
While the concealed of blockchain, the underlying technology behind cryptocurrencies, was praised, bitcoin got crashed.
“There is no intrinsic value for something like bitcoin so it’s not really an asset one can analyze. It’s a moment ago essentially speculative or gambling,” Stephen Poloz, the governor of the Bank of Canada, reported CNBC Thursday.
Nobel Prize-winning economist Robert Shiller released CNBC ahead of Davos that it may be around for 100 years, yet it’s more likely to collapse.
“(Bitcoin) might totally collapse and be ignored and I think that’s a good likely outcome but it could linger on for a appropriate long time, it could be here in 100 years,” Shiller determined CNBC.
Bitcoin’s reputation as a currency that is primarily used for illicit operations still lingered too.
“The fact that the anonymity, the lack of transparency and the way in which it secretes and protects money laundering and financing of terrorism and all sorts of dark vocations is just not acceptable,” Christine Lagarde, managing director of the International Capital Fund, said during a panel talk in Davos earlier this week.
Bitcoin saw a Brobdingnagian price rise last year but has had a tough start to the year. The assay of the cryptocurrency is down over 21 percent since January 1.
Cryptocurrencies are damned volatile and many have called the space a bubble. But in Davos, there were a unselfish number of leaders in the crypto space attending the Forum.
They were bullish on the unrealized of the technology and countered the views of Poloz and Shiller.
“We are still not in the kind of dotcom fizz territory in terms of the overall market capitalization,” Richard Muirhead, overall partner at Fabric Ventures, told CNBC during a session at The Sanctum on Thursday.
His sentiment was echoed by Nic Cary, co-founder of cryptocurrency wallet Blockchain.
“You arrange to look at the fundamentals,” he said. “To us, we are seeing increases in transaction volume and to me that’s one of the cardinal indicators that more people are using this in their always lives and that’s really interesting to me.”
Cryptocurrency is a truly divisive text and discussions in Davos have further brought it on to the world stage.