Mohamed El-Erian, Allianz's chief economic advisor, said yesterday at the conference "Consent & # 39; in New York that the cryptocurrencies are here to stay. His positive outlook comes despite the prolonged collapse that has ruined markets all year.
Institutions that establish a "point of support"
In fact, El-Erian thinks that the recent collapse was a predictable part of the cycle and even healthy for the market. The increase in the demand for crypts, which pushed bitcoin prices towards $ 20,000, in turn, stimulated an excess of supply, causing the current sell-off.
Despite the collapse that has seen retail investors become more cautious and even abandon the platform, the interest of institutional investors is growing. The participation of the institutions in various crypto-projects is a positive sign.
We are witnessing an ongoing rotation – retailing is becoming more reasonable if desired. The exuberance is behind us, and the institutions are starting to establish a point of support and this is good in the long run.
El-Erian has revealed that it has opened a Bitcoin account with $ 400 for the purpose of verifying the platform. He concluded that there is a place for Bitcoin 00 and crypto, and will see a wider adoption, but not as a usurper.
"I think the cryptocurrencies will exist, they will become more and more widespread, but they will be part of an ecosystem, they will not be dominant like some of the first to believe they were," he said.
He stressed that, in his view, we should consider cryptocurrencies as raw materials and not as currencies.
El-Erian added that cryptocurrency will not replace money and that initially made him skeptical of Bitcoin. He has been presented as a global currency, but he does not believe he has the intrinsic attributes of a currency.
While believing that it is "not currency", El-Erian has finally been conquered by the technical aspects of Bitcoin and cryptocurrencies, and believes that they will hook up:
Initially I did not distinguish between cryptocurrency and underlying technology. I treated everything as one. How I evolved … I learned in the process.
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