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Mohamed El-Erian, chief economic officer of currency services company Allianz, stated that Bitcoin’s goal is not to become a global currency, nor can it replace the U.S. dollar. However, he believes that cryptocurrency can exist in the system forever and cannot be supervised and disappeared.
Economic expert El-Erian said that Bitcoin will not become a world currency that rivals the U.S. dollar
In an interview with CNBC, well-known economic expert Mohamed El-Erian talked about the long-term prospects of cryptocurrencies, especially Bitcoin.
El-Erian is the chief economic officer of Allianz, PIMCO’s parent company, and one of the most important investment managers. He has served as CEO and Co-Chief Investment Officer. This Egyptian-American concurrently serves as the president of Queen’s College and University.
Although El-Erian believes that Bitcoin may be a “very restless force”, he does not believe that it will become a “global currency” comparable to the US dollar. He said:
“I think it will always exist in the system, but its goal is not to become a global currency… its goal is not to replace the U.S. dollar.”
However, he does not believe that Bitcoin will “disappear under regulation.”
El-Erian also found that during the “crypto winter” in 2018, once the value of BTC plummeted to nearly $3,000, he bought some bitcoins, but did not specify the proportion of his purchases. “I think it is necessary to buy it-I did…I think I have framed it. I have this level and I have the purpose of enrolling in a degree,” he shared.
Until the end of 2020, Bitcoin returns to the level of $19,000, and the economic authority remains in his BTC position. However, he admitted that he had been misjudged to sell due to “misconduct”.
He divided Bitcoin investors into 3 categories. Mainly “fundamentalists”, the World Health Organization has long been a figure in the financial world. The second is a skilled investor. The World Health Organization is trying to diversify their investment portfolio. The last is a “speculator” of day commercialism.
He explained that the two main investor styles are “a truly strong foundation for the semi-permanence of the market.” However, he pointed out that once some speculators in the market are “shaken”, he will buy Bitcoin again.
He urged crypto trading to interact with regulators as soon as possible because crypto is transforming into more ideas. Again, this may help avoid restrictive headwinds faced by online giants such as Amazon, Google and Facebook. “When I talked to people in the cryptocurrency industry, I said that you have a responsibility not to repeat the mistakes of large technical schools. A big mistake of large technical schools is that they do not understand that they are becoming necessary for the system, so they are restricting preventively. There is no interaction in the sexual discussions,” he elaborated.
In addition, Allianz economic authorities warned:
“Cryptocurrencies must take the problem of illegal payments seriously. There is a problem of fraud. There is a problem with the stability of the platform.”
In August, El-Erian stated, “It’s time for more Western governments to avoid seeing the crypto revolution as a mixture of illegal payment schemes and reckless currency speculation.” He added: “I tend to tell people: Be very careful. This is usually to determine its own associate degree, but if the government allows it, it will only establish itself.”
Post Famous economic experts doubt whether Bitcoin can become the world currency First appeared in Bitcoin wire.
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