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Davos Aftermath: Investors Scold Bitcoin And Praise The Blockchain

Denis Goncharenko

The World Economic Forum (WEF) in Davos, Switzerland ended. Since there is always a kind of a tradition to make a summary, it is worth noting that the rhetoric regarding cryptocurrency and Bitcoin was, to put it mildly, far from positive.

A rather strange situation — the general impression of the forum was mostly negative in media, in the sense of the impending global crisis described by Bess LEVIN in the Vanity Fair article. Moreover, it would be necessary to take into account the fact that the Blockchain Economic Forum was held in Davos almost parallelly, with the attention of media and investors riveted on Pavel Durov and his statements that the TON project is in its final stage. Rumors said the presentation of the project would happen in Davos. But rumors are rumors. Nevertheless, such an agenda means that the phenomenon of cryptocurrency is not to bury.

However, some don’t think so. For example, there is Jeff SCHUMACHER, the founder of BCG Digital Ventures, a company investing in blockchain technology. He was the first one to attack cryptos on the CNBC panel discussion. In his statement, he clearly distinguished the line between blockchain and cryptocurrency, noting that he firmly believes in the future of the first, at the same time calling Bitcoin a “pseudo-currency”, which, in his opinion, costs nothing:

"I do believe it 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."
Another well-known investor who spoke at the CNBC panel discussion was North Island Chairman Glenn HUTCHINS, and he expressed an almost similar opinion. The investor said that his company focused precisely on the technology itself, and not on cryptocurrencies.

"I am much less interested in investing around bitcoin as a currency unit or a currency equivalent, or even the blockchain as an accounting ledger. I am thinking much more about the protocols. In other words, what is the underlying protocol going to do as a consequence of which, which tokens are valuable or not,"

— Hutchins explained his position but also added that there is a high probability that the cryptocurrency will eventually become a means for storing value.

Certainly, such statements could not be ignored by well-known crypto enthusiasts. Joseph YOUNG, an investor and contributor to Forbes and Cointelegraph, quipped on Twitter in response to Schumacher's statements: “Airplanes will go to zero, while engines have potential.”

Andreas ANTONOPOULOS, a renowned expert in cryptocurrency and cybersecurity, and a tutor at the University of Nicosia, also expressed his embarrassment. He noted that blockchain and Bitcoin are so closely interrelated that it is almost impossible to separate them:

“Blockchain is one of the four foundational technologies behind Bitcoin and it can’t stand alone. But that hasn’t stopped people from trying to sell it. Blockchain is Bitcoin with a haircut and a suit you parade in front of your board. It is the ability to deliver sanitized clean comfortable version of the blockchain of Bitcoin to people who are too terrified of actually disruptive technology. ”

Of course, there is an undisputed trump card in the hands of crypto skeptics — the current situation in the cryptocurrency market is poor and still no sign of awakening. However, even prominent financial analysts, who are far enough from the cryptocurrency industry, are sure that bitcoin and cryptocurrency are not worth zero. For example, Mohamed EL-ERIAN, Allianz chief economic adviser, stated to Reuters that cryptocurrency would survive the current bear market: "They will become more and more widespread, but they will be part of an ecosystem."

The most ridiculous in this situation is the fact that the rhetoric of legacy players has not changed at all over the year. In 2018, in Davos, cryptocurrency was criticized by George SOROS, who called cryptocurrency a bubble which is not a stable means of accumulation. There was also Cecilia SKINGSLEY, head of the Sweden Central Bank, claiming that Bitcoin and other cryptocurrencies do not meet the criteria of money. So we can be confident that the traditions of the WEF in Davos have been honorably respected. You come, you blame cryptocurrency and leave with a sense of accomplishment. Despite any criticism, the industry continues to move forward. The night is darkest just before dawn.

Image courtesy of Medium Blog

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