At Davos, Bitcoin Finding Its Place Among World’s Elite

At the 2014 World Economic Forum in Davos, Switzerland, Treasury Secretary Jack Lew and JPMorgan Chase CEO Jamie Dimon were the only ones to speak about cryptocurrency, and that was to attack the “incredulity” of it in world finance.

What a difference a year makes.

This year, one of the hottest topics at Davos is on the future of cryptocurrency, specifically Bitcoin, according to CNBC’s Matt Clinch. On Jan. 23, a seminar dubbed “From Bucks to Bitcoins” will look at how digital currency can be a disruptive economic influence in the future. Around the town, visitors can buy anything from shuttle fare, to sleigh rides, to new Nissans using digital currency.

It’s a bit ironic how this year is the breakout year for Bitcoin at Davos, given the lackluster first month of 2015. One analyst called Bitcoin the “worst investment 0f 2014,” as Bitcoin prices plunged from $800 to $300. Yet Bitcoin evangelists like Wences Casares, founder and CEO of California-based Bitcoin service provider Xapo, claims that it is a “substantially better” investment than 2014. Casares is hoping to convince the policymakers and business heads that pour into the resort town that despite Bitcoin’s valuation troubles, it is a disruptive financial development that has long-term potential as a reliable currency.

But Bitcoin may have some competition for the attention of the Davos crowd. Ven, a predecessor to Bitcoin, is also getting some attention this year. While less anonymous a currency than Bitcoin, it is a cryptocurrency backed by a basket of commodity futures, carbon futures and various international currencies. According to Clinch, it is seen as a more stable currency than Bitcoin whose pro-environmentalism tie-in earns support from more conservative power-players who prize stability over volatility. Bitcoin’s dramatic decline in value doesn’t help matters either, but the proliferation of its use around the resort signals that cryptocurrency is very much in the mainstream.