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Deutsche Bank: The collapse of Bitcoin amid the financial worries of 2018

The global economy continued its strong rise throughout 2017, spurred in part by very low interest rates and massive investments in various markets. However, according to Deutsche Bank International Chief Economist, Torsten Slok, the major risks for the global economy in 2018 include a Bitcoin crash.

Slok sees a huge potential for volatility in the price of cryptocurrency. , and indicated that the price could even see huge changes before the end of the current year. His main concerns include regulation, transparency and disclosure, as well as the volatility that is drifting into the global marketplace. He said:

"It's mainly because (Bitcoin's price volatility) is something that I think the financial markets have so far dismissed as a small problem, "said Slok. "We are a little concerned that this could become more systemic, in particular, if current trends continue until 2018."

One of many

Although Bitcoin presents a potential risk for the future, a multitude of other risks could well weigh on the Economy, including Brexit developments, US inflation rates, North Korean nuclear test plans and a possible housing bubble in Sweden or Norway.

Of course, crypto-fanatics argue that Bitcoin effectively covers all of these other market risks, because it represents a related non-fiat asset that is not subject to inflationary pressures or fluctuations in the market. market caused by national reserve banks.

For example, Mike Costache, an adviser to Hdac says:

"Bitcoin is the anti-trust money that is this antidote to [economic crisis]. several rounds of Quantitative Easing (the exact equivalent of a company buying its own bonds, which is self-governing and more or less illegal) is a bubble.This is why I say "Bitcoin" Is not the bubble, that's the pin. "

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