Deutsche Bank has issued a market briefing for 2018. The document, created by Chief International Economist Torsten Slok, lists 30 possible threats that could disrupt global markets next year. Alongside entries like “North Korea” and “Brexit”, is bitcoin. Its inclusion shows the extent to which the banking sector is eyeing the revitalized digital currency. While some institutional investors see bitcoin as an opportunity, many more consider it a threat.
Bitcoin Über Alles
With over 100,000 employees and annual revenue of $35 billion, Deutsche Bank is a global powerhouse. The company has had its share of controversies (it was fined $425 million for money laundering this year and another $258 million for violating sanctions in 2015), but it still exerts a sizeable influence over the global finance sector. When its Chief Economist speaks – especially when warning of possible market threats – the investment world takes notice.
Torsten Slok’s list of the 30 greatest risks markets face in 2018 makes for interesting reading. Entries, which appear in no particular order, include U.S. inflation increasing sharply, the Russian presidential election, and the housing bubble bursting. There’s one particular entry that stands out however – bitcoin. Specifically, the entry states: “Bitcoin crash, confidence impact on retail investors.”