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It is not terribly common for a mainstream economist to say anything good about bitcoin in the period of its downward trend, but Mohamad El-Erian has once again made a & rsquo; exception.
The cryptocurrency does not go away
The chief economic adviser of Allianz said in an interview that the cryptocurrencies are not dead, although they may be overestimated. He specifically mentioned Bitcoin as a resource whose purchase value should be around $ 5,000, a sentiment he had already shared in June. In his latest statements, El-Erian added that unnecessary speculation led to the previous bullish action, causing an unjustified frenzy of purchases.
He told Yahoo Finance:
"What we are getting is the awareness that the adoption is not going to be as big and fast as the supporters of the crypt would like. role in the ecosystem, but it will not be the currency that many supporters would like it to be. "
The declaration came at a time when the cryptocurrency market as a whole is undergoing a robust bearish correction. The capitalization of the sector has fallen by 80 percent compared to its historical peak of this year. All the best coins, including bitcoins (BTC), ripples (XRP), ethereum (ETH) and stellar (XLM), contributed to the overall loss. All eyes are now on the bitcoin's annual minimum around $ 5,800 – just $ 800 above El-Erian's expectations.
Who said what during Downtrend by Bitcoin
Other leading financial experts have feared that the downward trend of bitcoin is all but over and its value may even go lower than it expects Rian. [19659005] Luis Carranza, the founder of the London Fintech Week, in June, said that the bitcoin would probably set its minimum near $ 2,500 in 2018.
"$ 4,500 could be the bottom, but nothing prevents $ 2,500 from the fund "he told Express UK
Nouriel Roubini, the American cryptic economist and skeptical cryptocurrent who predicted the collapse of the stock market in 2008, said that the value of the bitcoin could eventually go down "to zero". He even criticized smart ethereum contracts to be the tools that can govern only "kangaroo courts".
Neil Welson, an analyst at ETX Capital, said during the previous background that the bitcoin will be derailed as soon as the regulatory crisis is closer.
"The selling pressure right now is intense because there has been nothing but bad news for the bitcoin bulls in recent times. Try to grab the falling knife is a risky game," he said at the Guardian.
At the same time, there are many finance professionals who have come to support bitcoin's short-term prospects.
Jürgen von Hagen of the Universität Bonn believes that the success of any decentralized activity is proportional to the limits of conventional currencies.
"Cryptocurrencies would become attractive if central banks made currencies that became very unstable, and their widespread use in the financial system would be a result, not a cause, of instability."
Barry Silbert, Founder and CEO of Digital Currency Group , a venture capital firm, said that bitcoin has set its fund in June cryptocurrency could not go lower.
"As a class of good, it's here to stay … I'm 100% sure that a decentralized and non-fiat form of money is here to stay," he said.
Featured image from the World Economic Forum / Flickr
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