The Davos World Economic Forum is mostly an opportunity for the wealthy to swap ideas and innovations, and for financial ‘advisers’ to rub shoulders with them, aka for bankers to get them to invest with them.
One of those present was former German Central Bank CEO and current UBS Chairman Axel Weber, who was asked during a Bloomberg interview what were his biggest fears for 2018. Mr Weber responded that his bank, still Switzerland’s biggest, will not start trading bitcoin as he thinks it is looked on favorably for the moment because “any investment that goes up in price gets looked at by investors”, but fears it could lead to a “massive” drop in value.
“This is something where the price is really unclear.”
“We fear that in the future if these investments implode and the market corrects, then investors will be looking at who sold us this.”
As that news unfolded, Bitcoin’s value was once again hovering around $10k, as it has already done multiple times in the past week.
Technical analysis of the charts states that traders now expect the bears to have taken over from the bulls and the crypto currency will start trading below the $10k level in the next few days, weeks.
Goldman Sachs, one of the largest banks in the world, also warned against Bitcoin in a letter to investors yesterday, when it said: "We think the concept of a digital currency that leverages blockchain technology is viable given the benefits it could provide: ease of execution globally, lower transaction costs, reduction of corruption since all transactions could be traced, safety of ownership, and so on. But bitcoin does not provide any of these key advantages."
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I'm sure UBS and the other big banks would like that very much