Ethereum News Update
As predicted, the folks at this year’s World Economic Forum in Davos, Switzerland hedged their bets on cryptocurrencies. On one hand, they don’t think Bitcoin is a stable currency; on the other, blockchain is a super-useful technology…for anything other than money.
If you’re wondering why this matters, remember that Davos is where elites gather to form the “conventional wisdom.” Not all of their forecasts pan out—as they’re not omnipotent in the way conspiracy theorists would have us believe—but they are extremely influential nonetheless.
For example, Robert Shiller spoke at a panel about the future of cryptocurrencies. (Source: “The Crypto-Asset Bubble,” World Economic Forum, January 25, 2018.)
Shiller became famous for inventing a new and creative national home price index. The success of that index made him something of a hero on Street, and his 2013 Nobel prize only strengthened his authority among the rich and powerful.
He walked a careful line on Thursday’s panel, calling blockchain a “really clever idea” that is ill-fitted to currency matters.
Ethereum Price Chart
“I’m impressed by the technology,” he said. “And it is spreading in certain quarters, there are certain people who love this. But it seems to me it’s technology for something else. It’s gone viral as a currency. The blockchain is important, but it’s not stable.”
The other panelists agreed. Some even went further.
Zhu Scott of Radian Partners said that Bitcoin is “a very lousy currency,” confirming my suspicion that Davos is trying to downplay blockchain’s role in global finance.
This is a good thing for Ethereum prices.
ETH investors might lose a little in the short-run, as bearish crypto remarks are bound to hurt the entire industry. But over the long haul, Ethereum will benefit from a blockchain-but-not-Bitcoin approach. Ethereum is the heir apparent to that trend.
That said, with the current volatility around these issues, we are limiting our 2018 Ethereum price forecast to $1,500.