Famous economist doubts that Bitcoin becomes a global currency - regulation
Famous economist doubts that Bitcoin becomes a global currency - regulation
According to Mohamed el-Erian, chief economic advisor of the financial service provider Allianz, Bitcoin will not be a world currency and will not replace the US dollar. However, he believes that the cryptocurrency always exists in the ecosystem and will not be regulated from existence.
Bitcoin does not become a global currency that competes with the US dollar, says economist el-erian
The famous economist Mohamed el-Erian spoke in an interview with CNBC on Monday about the future prospects for cryptocurrencies, especially Bitcoin.
el-Erian is Chief Economic Advisor at Allianz, the parent company of Pimco, one of the largest investment managers where he was CEO and Co-Chief Investment Officer. The Egyptian-American businessman is also the president of the Queens College of the University of Cambridge.
While el-erian believes that Bitcoin is a "very disruptive force", he does not believe that it will ever be a "global currency" that can compete with the US dollar. He said:
I think it will always exist in the ecosystem, but it won't be a global currency ... it will not replace the dollar.
He also does not believe that Bitcoin can be "regulated out of existence".
el-Erian also announced that he bought Bitcoin in the "Krypto-Winter" 2018 when the price of btc fell to almost 3,000 dollar, But it didn't indicate how much he bought. "I felt forced to buy it - I really did ... I felt that I had framed it. I had this level, I had an entry point," he said.
The business advisor held at his btc position until Bitcoin regained the level of 19,000 USD. However, he admitted that due to "behavioral errors" he misjudged when to sell.
he categorized Bitcoin investors in three types. The first are “fundamentalists” who invest in the long term. The second are professional investors who want to diversify their portfolios, and the last are daytrading "speculators".
he explained that the first two types of investors are "really strong foundations for this market in the long term". However, he noted that he would only feel comfortable to buy Bitcoin again when some of the speculators are "shaken" on the market.
He emphasizes the crypto industry to conclude earlier than later with the regulatory authorities, since crypto is becoming more and more a mainstream. He said this would help to avoid the regulatory headwind, with which internet giants such as Amazon, Google and Facebook are faced. "When I speak to people in the crypto industry, I say that they have the responsibility not to repeat Big Tech's mistake. Big Tech's big mistake was that they did not recognize that they became systemically important and therefore did not lead to preventive regulatory discussions," he said.
In addition, the Allianz economic advisor warned:
crypto must take seriously that there are concerns about illegal payments. There are concerns about fraud. There are concerns about the stability of the platform.
in August, el-erian , "it is time that more western governments are Crypto revolution no more than a mixture of illegal payment systems and ruthless financial speculation dismissed. " He : "I tend to say: be really careful. This is a wealth worth wants to establish, but it can only establish itself if the governments allow this. ”
Do you agree to the Allianz economist in terms of Bitcoin? Let us know in the comment area below.
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