Like other cryptocurrencies, ethereum has been on a wild ride over the past few months. After climbing by significant margins in 2017, ETH started out the new year with a series of sharp price drops. Investors rotated funds out in the direction of fiat currency throughout January, and ETH fell to below $940 per token on January 22nd.
While this still marks a significant increase in value since this time last year, it nonetheless has some cryptocurrency enthusiasts concerned. Now, analysts are wondering if the annual meetings of the World Economic Forum in Davos, Switzerland, could impact the price of ethereum.
Davos Meetings Will Address Crypto
The World Economic Forum draws some of the wealthiest and most powerful individuals in the business and finance world together for a series of meetings. Many outsiders view the event with a range of emotions, and the Davos meetings have their share of detractors.
Nonetheless, the World Economic Forum events can have a major impact on the global business world. Given how significant cryptocurrency has been in the past year, it’s a sure thing that the growing space will be a prime topic of conversation this year.
Profit Confidential points to two different events in Davos which may impact the price of ethereum and other digital currencies. The first is a meeting entitled “The Remaking of Global Finance,” while the second concerns the “Crypto-Asset Bubble.” Both are set to take place this week, and each panel features some of the biggest names in finance: from leaders of the International Monetary Fund to Nobel Prize-winning economists.
Christine Lagarde, CEO of the International Monetary Fund, has expressed concerns that cryptocurrencies could be used for money-laundering activities. “The fact that the anonymity, the lack of transparency and the way in which it conceals and protects money-laundering and financing of terrorism and all sorts of dark trades, is just not acceptable,” Lagarde said. (See more: Bitcoin Price Stalls, World Leaders In Davos Talk Regulating Crypto.)
Private Meetings Key As Well
These public meetings could have a significant bearing on the way global investment leaders view digital currencies. Perhaps even more significant, though, are the countless private meetings sure to take place in the course of the Forum. Some of these private meetings are well-known to outsiders, including the “IGWEL” (Informal Gathering of World Economic Leaders) meeting. Others take place casually or more naturally.
It’s possible that big names in Davos will move to regulate or limit cryptocurrencies, particularly if they see them as a threat to national currencies. On the other hand, platforms like ethereum and ripple offer the potential to revolutionize the traditional banking industry using blockchain technology, and they might see support. Depending on the outcome of the meetings, cryptocurrency prices may slide up or down as a result.
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