Economy on a global scale continued to rise in 2017, partly under the influence of very low interest rates and large-scale investments in different markets.
However, according to a leading international economist of Deutsche Bank Torsten Sloka, one of the main risks for the global economy in 2018 is the collapse of bitcoin.
Slok sees huge potential for price volatility in the cryptocurrency, like other economists, he believes that the price can seriously change before closing the current year. Among the risks he sees the regulation, transparency and disclosure, as well as the volatility that is beginning to have an impact on the overall market. He said
This is mainly due to the fact that it (the volatility of bitcoin) is something that, in my opinion, the financial markets didn’t pay much influence and was considered as insignificant. We are a little worried that this may be more systemic in nature, in particular, if the current trend will continue until 2018.”
One of the many
While bitcoin represents a potential risk for market growth, many other risks, represent a much greater risk to the economy. Of particular concern Brexit, the inflation rate in the United States, the nuclear tests of North Korea and a potential bubble in the housing market in Sweden or Norway.
Of course, cryptocurrency fanatics will argue that bitcoin is actually a hedge against other market risks, because it is unattached to Vietnam money asset which is not subject to inflationary pressures or the fluctuations of the market caused by national banks. Due to internal monetary manipulation Central actors are creating large risks.
For example, Mike Costache, Advisor Hdac believes that:
Bitcoin is the anti – trust money that is the antidote to the economic crisis. The U.S. dollar, after several rounds of quantitative easing (which is very similar to a Corporation buying its own bonds that appears to be more or less illegal) is a bubble. That’s why I say: “Bitcoin is not a bubble, it was the pin”.