Allianz's El-Erian will only buy Bitcoin back when speculative buyers leave the market - Bitxcon
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Allianz’s El-Erian will only buy Bitcoin back when spe...
Investment, News

Allianz’s El-Erian will only buy Bitcoin back when speculative buyers leave the market

Mohamed El-Erian, Chief Economic Advisor at Allianz, has divided bitcoin investors into three categories: “fundamentalists”, “professional investors” and “speculators”. He stated that he would become a BTC holder once again if the third type vanished from space.

Is El-Erian going to buy BTC again?

Mohamed El-Erian, president of Queens College and Allianz CEA, revealed that he was considering buying bitcoin again in a recent interview. He bought an undisclosed amount in the crypto winter of 2018 when it was worth around $ 3.000. Have you ever used the Bitcoin system?

“I felt compelled, I bought it. It seemed like I had framed it. This was my entry point.

At the end of last year, bitcoin soared to $ 19.000, and it decided to sell. The primary cryptocurrency saw a continued rally in the months that followed, with bitcoin reaching an all-time high just a few days before at $ 69.000.

El-Erian stated that he could be the new owner of Bitcoin, but only if certain “speculators”, who are active on the daily market, disappear.

BTC investors are not the only ones who can be considered “fundamentalists”. These professionals and long-term investors want to diversify their portfolios. He said that these two types are “very solid” in supporting bitcoin and other cryptocurrencies. They are also familiar with the “underlying technology model” and can be extremely “influential in future periods.”

The dollar will not be replaced by cryptocurrencies

A senior Allianz executive revealed that digital assets are a “very disruptive force” as well. These thoughts were also shared by Michael Saylor, MicroStrategy CEO and one of the most passionate supporters of bitcoin.

El-Erian, however, doesn’t believe bitcoin can replace the US dollar’s dominance, even though he sees its potential.

It will be an ecosystem currency, but not a global one. It will not replace ” the dollar

It requires regulation

El-Erian encouraged cryptocurrency insiders and regulators to get in touch with them as soon as they can to avoid the problems that giant companies such as Amazon, Facebook, and Google faced in their early days.

“When I speak to people in cryptocurrency, I tell them that they have a responsibility to not repeat Big Tech’s mistakes. Big Tech made a huge mistake by not realizing they were systemically important. They didn’t engage in regulatory discussions.

China may have banned this asset class but it is still working to issue its own digital currency and to apply blockchain technology in certain parts of its economy. El-Erian stated that while China has made progress, China will not. He warned that the United States and all Western countries should take action on the issue. Otherwise, China will be the one dictating the rules.

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