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Toned Down Approach and Mixed Crypto Predictions at World Economic Forum in Davos

January 24, 2019 17:05
Source: World Economic Forum
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This time around the craze and the excitement around cryptocurrencies seems to have faded in the World Economic Forum compared to last year with most of the crypto leaders from different countries missing the scenes. The most watched out event which is attended by high profile politicians and corporate leaders are giving out mixed response to cryptocurrency future.

A panel hosted by CNBC in which Jeff Schumacher, founder of BCG Digital Ventures, has predicted the worst for bitcoin but given his approval for the underline technology. He said: “I do believe it [bitcoin] will go to zero. I think it’s a great technology but I don’t believe it’s a currency. It’s not based on anything.”

Charles Li Xiaojia, chief executive of the Hong Kong Exchanges and Clearing (HKEX) has also commented on the subject and emphasized on the consistent business model for firms dealing with cryptocurrencies. He refrained himself from taking out any names but it was a direct swipe at the Bitmain IPO application. He said:

If a company made billions of US dollars through Business A, but suddenly said it will do Business B without showing any performance or said Business B is better, then I don’t think the Business A featured in their application will be sustainable.

Besides, if regulators were hands off [on Business A] in the past but will regulate it in the future, will you be able to continue the business and still make money from it?

The lack of consistency of cryptocurrency firms is what concerning Xiaojia, and firms are devising new business strategies and model very often to stay in the business. Li told in the sidelines of World Economic Forum summit.

It was reported sometime back that Hong Kong Exchange is reluctant to approve the IPO applications of Bitmain technologies due to lack of consistent business model.

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