Mohamed El-Erian, chief economic adviser of financial services company Allianz, stated that Bitcoin will not become a global currency and will not replace the U.S. dollar. However, he believes that cryptocurrencies will always exist in the ecosystem and will not disappear by regulation.

Economist El-Erian said that Bitcoin will not become a global currency that competes with the U.S. dollar

The well-known economist Mohamed El-Erian talked about the future prospects of cryptocurrencies, especially Bitcoin, in an interview with CNBC on Monday.

El-Erian is the chief economic adviser of Allianz. Allianz is the parent company of PIMCO. PIMCO is one of the largest investment management companies. He served as CEO and Co-Chief Investment Officer. The Egyptian-American businessman is also the principal of Queen’s College at Cambridge University.

Although El-Erian believes that Bitcoin is a “very destructive force”, he believes that it will never become a “global currency” that can compete with the US dollar. He said:

I think it will always exist in the ecosystem, but it will not become a global currency…it will not replace the U.S. dollar.

However, he also does not believe that Bitcoin can be “disappeared by regulation.”

El-Erian also revealed that he bought some bitcoins during the “crypto winter” in 2018, when Bitcoin It plummeted to nearly $3,000, but did not specify how much he bought. “I think it’s necessary to buy it — I actually bought it… I think I have framed it. I have this level, and I have an entry point,” he shared.

The economic adviser insists on his Bitcoin Until the end of 2020, Bitcoin returns to the $19,000 level. However, he admitted that he misjudged when to sell due to “misconduct”.

He divided Bitcoin investors into three categories. The first is the “fundamentalists” who make long-term investments. The second is professional investors who want to diversify their investment portfolios, and the last is “speculators” in day trading.

He explained that the first two types of investors “are a solid foundation for the long-term market.” However, he pointed out that only after some speculators in the market were “stunned” would he be assured of buying Bitcoin again.

He urged the encryption industry to contact regulators as soon as possible because encryption is becoming more and more mainstream. He said this will help avoid regulatory resistance faced by Internet giants such as Amazon, Google and Facebook. “When I talked to people in the crypto industry, I said that you have a responsibility not to repeat the mistakes of big technology. A big mistake of big technology companies is that they don’t realize that they are becoming systemically important, so they are not participating in preemptive strikes. Regulatory discussions,” he elaborated.

In addition, Allianz’s economic adviser warned:

Cryptocurrencies need to take the fear of illegal payments seriously. Some people worry about fraud. Worried about platform stability.

August, Erian Said“Now is the time for more Western governments to stop viewing the crypto revolution as a mixture of illegal payment schemes and reckless financial speculation.” Add to: “I tend to tell people: Be very careful. This is an asset that you want to build yourself, but you can only build yourself if the government allows it.”

Do you agree with Allianz economists’ views on Bitcoin? Please let us know in the comments section below.

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