2017 has seen a strong uptick for the global economy, with very low interest rates offered to clients and massive investments coming into various markets. However, Torsteon Slok, Chief International Economist for Deutsche Bank, claims that one of the major risks for the global economy in 2018 is a potential crash of Bitcoin.
Slok argues that one of the main drivers of the potential crash would be the volatility of Bitcoin and of the cryptocurrency market in general, which is what many economists say too. He said that the prices might become highly volatile again as we approach the end of 2017 and expressed concerns regarding the regulation, transparency and disclosure of the market:
“It’s mainly because it (Bitcoin price volatility) is something that I think financial markets so far have been discounting as a small issue. We do worry a bit that it could become more systemic, in particular, if the current trends continue into 2018.”
Other major concerns with regards to the state of global economy in 2018 include Brexitdevelopments, US inflation rates, North Korea’s nuclear testing plans, and a potential housing bubble in Sweden or Norway.
Many crypto fanatics argue that Bitcoin is not actually likely to experience inflationary pressures or market fluctuations brought on by national reserve banks, since it’s a non-fiat asset. Mike Costache, advisor of Hdac, said in an official statement:
“Bitcoin is anti-trust money that is that antidote to [economic crisis]. The US dollar after several rounds of Quantitative Easing (the exact equivalent of a Corporation purchasing its own bonds, which is self-dealing and more or less illegal) is a bubble. This is why I say ‘Bitcoin isn’t the bubble, it’s the pin.’”