They roll up in limousines and fly in in private jets. In the Swiss spa town of Davos, the who’s who of the international financial scene comes together – and, after a break due to the pandemic, confers again on global political issues such as climate change and the Russian-Ukrainian war. So much criticism of the elitist nature of the Word Economic Forum (WEF) and his sometimes unsuccessful dystopian campaigns such as the “Great Reset”, the annual meeting is also a litmus test for the state of the global economy.
Bitcoin in Davos: does it fit?
With its grassroots-like structure, Bitcoin is actually the exact opposite of the big Davos circus. It is logical that WEF founder Klaus Schwab Bitcoin Twitter likes to be dragged through the cocoa. Of course, elitist structures like the World Economic Forum attract conspiracy theories like moths to a light.
Nevertheless: Cryptocurrencies are a topic in Davos again this year. This is how Miami Mayor Francis Suarez made it onto the stage at the WEF – and held up the flag for Bitcoin. According to Suarez, he now receives his salary entirely in BTC.
And so he is by no means the only Bitcoin fan among the WEF participants. BTC-ECHO was able to speak to some of the participants of the WEF on site. In fact, the crypto scene there is making a lot of noise.
If you try to make small talk on the street, chances are you’ll strike up a conversation with someone using blockchain technology and knowledgeable about cryptocurrencies. I would say blockchain is definitely ubiquitous this year,
tells us Adrian Bono, who is with the crew of STORM Partnersa blockchain service provider, is present on site.
Bitcoin bulls everywhere
STORM Partners takes care of the EmTech Investment Hub several panel discussions in which Bitcoin and Co. are the topic. This is how the exJP Morgan-Investment analyst Pablo Jodar on Bitcoin and its suitability as an inflation hedge. If you look at the current inflation numbers and the lousy BTC performance recently, doubts are at least appropriate.
But Jodar sees it calmly. The current volatility is only problematic in the short term; but right now you should think back to the reasons why you keep Bitcoin in your portfolio at all.
One could say that investors are starting to see the intrinsic value of Bitcoin based on its economic characteristics, as it is a scarce, decentralized, and secure asset. Therefore, bitcoin can be considered a good hedge against inflation in the long-term as it allows the buyer to preserve their purchasing power.
Pablo Jodar to BTC-ECHO
And the correlation to the stock market? The analyst also sees them calmly. Speaking to BTC-ECHO, Jodar says that “correlation will be broken once the market is ripe for it.” With a market capitalization of 600 billion US dollars, BTC is just not big enough.
The moment institutional market participants recognize the advantages of Bitcoin compared to gold, the correlation with the traditional financial market will break.
Pablo Jodar to BTC-ECHO
Cyrus Fazel, the founder of Bitcoin Broker, agrees SwissBorg, to. The fundamentals are what to focus on in the bear market.
The best thing you can do in such market phases is to stay in bitcoin and the other major coins.
Cyrus Fazel to BTC-ECHO
So it shows again: In stormy times, Bitcoin is the rock in the surf. That has also arrived in Davos.
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