“Bitcoin cannot be considered a currency”, said Mohamed El-Erian, a top financial commentator and institutional investor. “…currencies normally serve as a store of value, but they must be predictable and stable to work as a medium of exchange.”
El-Erian, currently the chief economic advisor at Allianz stated:
“Bitcoins aren’t there yet, they’re still trying to find stability so it’s more of a commodity than it’s a currency.”
Early in September, he had already said he thought “Bitcoin was overvalued…”. At the time, he said his main concern was if “the assumption in the pricing about adoption [was] consistent with reality”. “This is the question investors should ask themselves if they are holding bitcoins for a couple months”, told El-Erian to CNBC.
Mohamed El-Erian, an Egyptian American businessman, is the chief economic adviser at Allianz. He also served as chair of President Obama’s Global Development Council and is a columnist for Bloomberg View, and a contributing editor to the Financial Times.
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