23 - 26 January, 2018. I think you would definitely want to write this down in your calendar, because it is more important than you think. As you might already have noticed from the photo above, we are going to discuss a bit about the World Economic Forum, which will take place in Switzerland, from 23-26th of January. I am not a conspiracy theorist, rather I am trying to balance my risk-reward accordingly - this is what keeps a trader in the business.
Content of the article
- What Is The World Economic Forum (WEF)
- Who Attend WEF
- Why Should I care / Conlusion
What Is The World Economic Forum
The World Economic Forum (WEF) is a Swiss nonprofit foundation, based in Geneva, Switzerland. Its mission is cited as
committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.
The Forum is best known for its annual meeting at the end of January in Davos, the meeting brings together some 2,500 top business leaders, international political leaders, economists, and journalists for up to four days to discuss the most pressing issues facing the world.
Who Attends The World Economic Forum
The attendees of the event are very high-profile and "everyone who is anyone in the finance world (and not only) attends". For example, this year the president of the United States - Donald Trump is likely to attend the meeting. Much of the attendee list is kept private until the event, but we are expecting to see
- Christine Lagarde, International Monetary Fund chief
In October 2017, Chrisitne Lagarde said
It's time for the world's central banks and regulators to get serious about digital currencies
Although we should acknowledge that she thinks "massive disruptions" are ahead due to blockchain technology.
- Bankers
A big percentage of the attendees will be bankers or at least in the banking industry. As we all know and have read multiple times - Banksters don't like blockchain and crypto. Of course, this is pretty expected, after all this technology has the power to absolutely change this industry. Traditional finance will be gone and it will be replaced by a better model, a decentralized model.
- Economists
From Nobel Prize winners to best-selling authors, economists tend to disagree with the Bitcoin model - they don't like it as a store value ( because it is so volatile) and they don't accept is a medium of payment.
- High-Rank Government Officials
In the 2017 WEF meeting, Xi Jinping was also there, he is the President of the People's Republic of China. As we all know the idea for decentralization is opposing the traditional model and governments certainly don't like it. Private transactions, with almost zero fees, a system that cannot be rigged isn't a comfortable one for the government.
Why Should I Care
So after we have the information, it's time to do some thinking. This is one of the most important events in the world, concerning finance, economics, regulations and how things ought to be in general. The attendees are in high positions in the current system and they wouldn't like to be surprised by the blockchain revolution, I really think that some of them are a bit afraid of the alternative. Many times regulations have tumbled the crypto market - lastly was the South Korea "statement", which was not a statement at all, but that didn't matter to the markets, because Bitcoin was down over 20% at one point. Crypto lost 20% market cap in 2 hours.
You should care, because it is absolutely possible that in this event, crypto regulations will be discussed and most likely a plan will be drafted for their implementation. That might cause a brutal sell-off, I certainly don't want to wake to a 50% correction without taking any precautions.
So, now you have the information and it is your decision what to do with this information. I am not saying that it will happen for sure, but even if it doesn't, the risk reward is to be in a cash position for these three days. Then you can rebuy them, hopefully at higher prices.
