Tuesday, May 18, 2021

BITCOIN – The Biggest Risk for the Global Economy

The biggest risk in 2018 for the world economy will be the collapse of Bitcoin, the world’s most popular cryptocurrency, said Torsten Slock, leading international economist at Deutsche Bank .

In his opinion, the Bitcoin rate has a huge probability for volatility and can change dramatically even before the end of the current year, which in the financial world can certainly be considered a “Bitcoin Year“.

In addition to Bitcoin volatility, which extends to the general financial market, the expert from Deutsche Bank named the problems in the areas of regulation, transparency and disclosure as risks of crypto currency.

In addition, Thorsten Slock believes, the dynamics of global growth can reduce other risks – events related to Brexit, the level of inflation in the US, North Korea’s nuclear test plans, “bubbles” in the real estate markets, etc.

China Stops CPEC funding over Corruption charges, Pakistan ‘Stunned’

At the same time, according to Deutsche Bank, the probability of a new wave of global crisis in China (one of the world’s major centers of crypto-currency) is especially high. According to Michael Spencer, chief economist of the bank in the Asia-Pacific region said that the level of indebtedness of Chinese non-financial corporations, households and governments has grown by more than 100% of GDP, and against this background there is concern about their financial stability. The high risks associated with the lending of China’s economy have also recently been warned by the IMF.

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