Mohamed El-Erian: the cryptocurrency is not dead
Despite the fact that the decline in the cryptocurrency market this year has already surpassed the worst performance of the dot-com bubble of the 1990-ies, chief economic adviser at Allianz Mohamed El-Erian (Mohamed El-Erian) believes that the time has come to bury the cryptocurrency. They will stay with us for a long time and occupy a niche, he said.
Known market analyst said in an interview with Yahoo Finance:
“Cryptocurrency is not dead, and, of course, is not dead the underlying technology. We will see more widespread use of both private and public sector of the blockchain and related technologies”.
According to him, the stock market may be overvalued, and the previous bullish trend was caused by excessive speculation causing undue temptation among investors. In June, El-Erian said that when the price of bitcoin falls to $5,000 per coin, it would be a good time to purchase. He confirmed the opinion, noting that $5 thousand for BTC — “this is reasonable”.
“With regard to cryptocurrency, then we get the understanding that the adoption will not be as wide and fast as I’d like its advocates. I think she will remain for a long time and will continue to play a role in the ecosystem, but will not be the currency you would like to see most of its supporters,” concluded economic adviser to Allianz.
Recall that in late June, the co-founder of BK Capital Management, capturador Brian Kelly (Brian Kelly) explained why before, “bury” bitcoin and cited the reasons why the price of the first cryptocurrency drops below $5900.