2018-7-1 22:45 |
Bitcoin is down about 70 percent from its peak from December of 2017, however, chief economic advisor at Allianz, Mohamed El-Erian, tells CNBC that Bitcoin is a buy if the price falls below $5,000.
Mohamed El-Erian is considered one of the most influential financial market thinkers in the world. He correctly predicted Bitcoin’s price explosion back in September of 2017 but warned that Bitcoin’s meteoric rise did not represent mass adoption. While at present, El-Erian doesn’t predict Bitcoin making investors rich overnight, he still sees merit in investing in the world’s most popular cryptocurrency.
“I don’t think you get all the way back to $20,000, but I do think that you need to establish a base whereby the people who really believe in the future of bitcoin consolidate and then that provides you a lift.”
Bitcoin has had a tumultuous run in 2018, following its record breaking rise to over $19,000 in 2017. At press time, Bitcoin is valued at $6,335. While still maintaining over $100 billion market cap, Bitcoin’s popularity has been in sharp decline over the last 6 months.
According to CNBC, El-Erian doesn’t expect cryptocurrencies to replace government issued fiat currency anytime soon, but that cryptos nevertheless hold value as commodities.
“I suspect that if you look 10 to 15 years down the road, we will have digital currencies but the public sector will have involvement in that. It will not be pure bitcoin. It will be a means of exchange. It’s not going to be a currency, it’s going to be another commodity-like asset out there that you can trade, and mainly as a store of value.”
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