Cryptos are not a stable store of value, says a panelist at WEF in Davos

The hype of cryptocurrencies is increasing by the passage of time, all thanks to speculations that have led the digital currencies at this level. So how come the World Economic Forum (WEF) can forget about them. Cryptocurrencies took the stage at WEF, which is happening in Davos. Among other panelists, who primarily discussed whether Bitcoin is currency or not, Jennifer Zhu Scott, Radian Partners’s principal said that Bitcoin and altcoins don’t meet the criteria for money.

“The Crypto-Asset Bubble” was the topic of a panel discussion on the third day of WEF summit. There were other experts in the panel discussion including Cecilia Skingsley deputy governor of Sweden’s central bank, Neil Rimer co-founder Index Ventures and the Nobel Prize-winning economist Robert Shiller. Though most of the participants in the panel discussion admired the cryptocurrencies development in short span of time yet others also talked about the negative impact of cryptos. Jenifer Scott while arguing about the stability of cryptocurrencies stated,

“In my view, cryptocurrencies – bitcoin and the others – they don’t meet the criteria for money. They can be called an asset but they’re not a stable store of value, they fluctuate a lot, and you can’t use them as a medium of exchange.”

Robert Shiller called the cryptocurrency a “really clever idea” during the event, but also suggested that the tech (blockchain) should also be applied to other platforms. According to him,

“I’m impressed by the technology. 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 WEF has traditionally brought together supporters, opponents, and fence-sitters on Bitcoin and blockchain technology. While this year panelists seemed to agree on Bitcoin’s nature, concluding the crypto’s future to be uncertain.