Allianz Group's Chief Economic Advisor Believes Cryptocurrency is Not Dead
Mohamad El-Erian optimistic about cryptocurrency's future
Allianz Group's Chief Economic Advisor Believes Cryptocurrency is Not Dead
It is uncommon for mainstream economists to speak positively about Bitcoin during a general downward trend, but Allianz Group's Chief Economic Advisor, Mohamad El-Erian, once again became an exception.
El-Erian stated in an interview that cryptocurrency is not dead but its value may be overestimated. He specifically mentioned that the purchase value of Bitcoin should be around $5,000, a reaffirmation of his statement from June.
El-Erian also mentioned that unnecessary speculation caused investors to engage in unjustifiable bullish behavior. Despite the ongoing strong bearish correction in the cryptocurrency market, El-Erian believes that cryptocurrency will exist and play a role in the ecosystem, but it will not become the currency that many advocates hope for.
While El-Erian remains optimistic, other financial experts are concerned that the downward trend of Bitcoin is not over, and the predicted Bitcoin price is even lower than El-Erian's expectations.
The Future of Bitcoin
Around $500 may be the bottom. At the time, economist Nouriel Roubini predicted that bitcoin's price could drop to zero, while ETX Capital analyst Neil Welson warned that regulatory crackdowns could cause further declines. However, others, such as Jürgen von Hagen of Bochum University and Digital Currency Group CEO Barry Silbert, remain optimistic about the long-term potential of decentralized assets. Silbert, in particular, is confident that bitcoin has established a bottom and will continue to exist as a decentralized form of currency.
Bitcoin is a cryptocurrency that was created in 2009 by an anonymous person using the name Satoshi Nakamoto. Transactions are made without intermediaries – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.
Bitcoin can be used to purchase goods anonymously, without a central bank or single administrator controlling it. It is a digital currency system that uses cryptography for security. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million. Once all of them are mined, no more will ever be created.