Mohamed El-Erian - Chief Economic Advisor of Allianz - has classified bitcoin investors into three different categories: “fundamentalists, professional investors and speculators”. He said he would only become a BTC holder again if the third type disappeared from space.
Will El-Erian buy BTC again?
Queens College and Allianz CEA president Mohamed El-Erian revealed in a recent interview when he would potentially buy bitcoin again. It is worth noting that he bought an undisclosed amount during the "crypto winter" of 2018, when the asset's price was around $ 3.000. I have used Bitcoin system?
“I felt compelled to buy it - I really did. I seemed to have framed it. I had this level, I had an entry point ".
However, at the end of last year, bitcoin skyrocketed to $ 19.000 and decided to sell its position. In the following months, however, the primary cryptocurrency continued its rally, reaching an all-time high of around $ 69.000 just a few days ago.
Bearing in mind the significant price increase and developments in the cryptocurrency industry, El-Erian revealed that he could become the owner of BTC again, but on one condition: if some of the "speculators" of the daily market disappear.
Apart from them, BTC investors can also be "fundamentalists" - those who are long-term and professional investors looking to diversify their portfolios. These two types "are pretty solid in terms of supporting bitcoin and other cryptocurrencies," he said. They also understand the "underlying technology and model" and can be very "influential in the period to come".
Cryptocurrencies will not replace the dollar
The senior Allianz executive also revealed that he sees digital assets as a "very disruptive force." Michael Saylor, CEO of MicroStrategy and one of bitcoin's most passionate advocates, also recently shared those thoughts.
However, El-Erian does not believe in bitcoin's ability to replace the dominance of the US dollar, despite seeing its potential:
“I think it will always exist in the ecosystem, but it will not be a global currency. It will not replace the dollar ”.
It takes regulation
El-Erian urged cryptocurrency insiders to engage with regulators as soon as possible to avoid the problems giant companies like Amazon, Facebook and Google experienced in their early days:
“When I talk to people in the cryptocurrency industry, I say you have a responsibility not to repeat Big Tech's mistake. Big Tech's big mistake was that they didn't realize they were becoming systemically important, so they didn't engage in preemptive regulatory discussions. "
China may have banned the asset class, but it is still making progress to issue its own central bank digital currency and apply blockchain technology to certain sectors of its economy, El-Erian said. As such, he warned that the United States and other Western nations should move forward on the issue, otherwise China will dictate the rules: "If the West is not careful, China will set standards for the world."