Mohamed El-Erian, Chief Economic Advisor at Allianz, classified bitcoin investors into three categories: “fundamentalists”, “professional investors” and “speculators.” He stated that he would be a BTC holder again if the third type vanishes.
Is El-Erian going to buy BTC again?
Mohamed El-Erian, President of Queens College and CEA At Allianz, revealed in a recent interview that he was considering buying bitcoin again. He bought an undisclosed amount of bitcoin during the crypto winter 2018, when its price was approximately $3,000.
“I felt compelled, I bought it. I felt like I had framed it. This level was my entry point.
At the end of last-year, bitcoin soared to $19,000 and he decided that he would sell his position. The primary cryptocurrency saw a continued rally in the months that followed, with bitcoin reaching an all-time high just days ago of $69,000.
El-Erian stated that he could be a BTC owner again, keeping in mind the price rise and developments in cryptocurrency. However, he had one condition: if certain day-trading “speculators,” in the market, get “shaken out.”
BTC investors are not limited to them. They can also be “fundamentalists”, professional investors who want to diversify their portfolios and long-term investors. He stated that these two types are “very solid” in supporting bitcoin and other cryptocurrency. They are also able to understand the “underlying technology model” and can be extremely “influential in this period.”
Mohamed El-Erian Source: Twitter
Crypto will not replace the Dollar
The Allianz CEO also stated that digital assets are a “very disruptive force”.
El-Erian, however, doesn’t believe bitcoin can replace the US dollar’s dominance, even though he sees its potential.
It will be an ecosystem currency, but not a global one. It won’t replace the dollar.
It is necessary to impose regulations
El-Erian encouraged cryptocurrency insiders and regulators to get in touch with them sooner than later to avoid the same problems as giant corporations such as Amazon, Facebook, or Google had back then:
“When I speak with people in crypto industry, I tell them that they have a responsibility to not repeat the mistakes of Big Tech. Big Tech made the big mistake of not realizing they were systemically important and didn’t engage with regulatory discussions.
China may have banned this asset class but it is still working to issue its own digital currency central bank and use blockchain technology in certain areas of its economy. El-Erian stated that China has not yet banned it. He warned that the USA, and all other countries in the West, should take action on the matter or China will dictate the rules.
China will set the standard for the rest of the world if the West doesn’t pay attention.
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