El-Erian, Chief Economist Allianz - Cripto Will Survive But Will not Replace Money

Bitcoin will undoubtedly survive low current rates but will not replace money soon, Allianz chief economist Mohamed El-Erian said.

"Cripto will continue to exist and become more widespread, but will be part of a separate ecosystem, will not be the dominant currency, as some of the original enthusiasts believed"

El-Erian said at the Invest Invest in New York.

"Bitcoin can not replace conventional money because crypto are a commodity, not a fiat currency. They do not have native currencies. They will not replace the money. "

El-Erian: Digital coins are a commodity

Despite pessimists, things will change due to the interest that institutions willing to invest invest, says El-Erian.

"We are witnessing a rotation - retail sales become reasonable, exuberance is part of the past, and institutions are starting to stabilize, which is a good thing in the long run."

El-Erian reaffirmed the statement in September 2018, when he claimed that Bitcoin was overpriced at that time. In his opinion, crypto-standard should cost around $ 5,000 on purchase.

He insisted in the statement that virtual coins will not disappear as a result of this prolonged crisis. The market has gone through a period of unexpected over-consumption, which has caused record odds of nearly $ 20,000.

This situation has also caused a period of over-production that is responsible for the current crisis.

El-Erian argues that these developments - very damaging to many traders - are healthy for the market.

Barry Silbert, founder of the Digital Currency Group, shares this view. He added that recent market fluctuations are the inevitable "pain of growth" that any new industry is going through.

Silberd called low market shares "a fantastic opportunity." In his view, essential paradigm shifts happen behind the scenes, being hard to observe in a market obsessed with price fluctuations.

"Behind the backdrop, companies are set up to set up infrastructures for a new category of investors - the institutions. So fundamentally, no one slowed down. "

Contrary to El-Erian's opinion, millionaire Tim Draper speculates that Bitcoin will account for two-thirds of global finances.

Jeff Sprecher, the chairman of the New York Stock Exchange, claims that cryptomonas will exist from now on, regardless of the pessimistic market. "Undoubtedly the crypt will survive," Sprecher said.