Deutsche Bank listed 2018 financial market risk, bitcoin collapse among them

nRunaway Comment: The global economy is gaining momentum in 2017, but recently Torsten Slok, chief international economist at Deutsche Bank, listed 30 key risks to the global economy in 2018, including the risk of a bitter crash. Although Bitcoin poses potential risks for the future market, other risks in many respects will first slow down the pace of economic development. In particular, the progress of Brexit in the United Kingdom, the continuous rise of inflation in the United States, the North Korean nuclear test and the real estate in Sweden or Norway Bubble rupture and other issues. Bitcoin fans, on the other hand, think Bitcoin may hedge against these traditional financial risks.n
nTranslation: Clovern
The global economy continued its strong gains in 2017, due in part to the very low interest rates and the significant investments made in various markets. However, according to Torsten Slok, chief international economist at Deutsche Bank, the major risks to the global economy in 2018 include the bitcoin collapse.n
Slok, like other economists, sees the possibility of huge fluctuations in the prices of cryptocurrencies and says that there is likely to be a dramatic price change by the end of this year. He is mainly worried about regulatory, transparency, information disclosure and other issues, but also worried that this volatility will imperceptibly infiltrated the entire market. He said:n
n”The main reason for this concern is that I do not think the financial markets have so far thought that the high volatility in bitcoin prices is just a small issue that does not matter. If the current trend persists until 2018, I’m worried that the problem will get worse The more systematic. “n
There are many risks in the financial marketsn
Although bitcoin poses a potential risk for the future market, other risks in many respects will first slow down the economy. Especially the progress of the United Kingdom’s taking off from the EU, the continuous inflation of the United States, the nuclear test in North Korea and the rupture of the real estate bubble in Sweden or Norway.n
Of course, cryptocurrency enthusiasts would argue that bitcoin actually hedges all these other market risks because it represents an asset that is not associated with a legal currency and will not be subject to inflationary pressures or market volatility by the National Reserve Bank Impact. The internal monetary manipulation of the central entity poses a greater risk.n
For example, Mike Costache, Hdac consultant, said:n
n”Bitcoin is an antitrust currency and a recipe for fighting the economic crisis, and after a few rounds of quantitative easing, the dollar (which equates to a company buying its own bonds, a self-dealing, somewhat unjustified nature) That’s why I think ‘bitcoin is not a bubble, it’s an anchoring asset.’ “n

Leave a Reply

Your email address will not be published. Required fields are marked *