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Recently, Mohamed A. El-Erian, Chief Economic Advisor at Allianz, the corporate parent of PIMCO where he formerly served as chief executive and co-chief investment officer, shared his thoughts on Bitcoin.
El-Erian, who is the former chair of President Obamas Global Development Council (201217), made his comments during a conversation on October 31, 2022 with Andrew Ross Sorkin, co-anchor of CNBCs Squawk Box.
He said:
Bitcoin and crypto was going through what tends to happen to every innovation, which is the initial period of over consumption and over production. We had a proliferation of crypto related products. You had lots of people rushing in. You had Bitcoin going to almost $70K and then like most innovation that first cycle ends in tears. Then you get a reinforcement, if you like, and what we’ve seen.
If you are a crypto fan, you should welcome the relative stability weve seen over the last few months. That suggests that you’ve shaken out a lot of the excess.
Sorkin then interjected to ask if this means that that a true floor for the Bitcoin price is being created.
El-Erian replied:
I dont know about a floor, but it is the moment where you have a better basis. Now to be clear, I do not think that Bitcoin will become a global currency. I dont think youre going to get massive adoption. When people say were going to $100K, $200L, $300K, they assume massive adoption. Theyre not going to get that, but crypto can and should survive as part of the ecosystem for payments and as an asset class, speculative as it is, but theres an asset class. It just needs to be better regulated.
Picture Credit
Featured Image via Pixabay
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