The most famous cryptocurrency was trading around $5,850 earlier today, representing a 70% drop from the peak it reached in late 2017.
El-Erian, chief economic advisor at Allianz, sees bitcoin emerging as more of a tradeable commodity than a currency, though he thinks blockchain, the technology behind cryptos, is here to stay.
Mohammed El-Erian is considered one of the most influential financial market thinkers in the world. Today, he said that the cryptocurrency would be worth considering if it falls before $5,000. Bitcoin was trading around $5,870 as El-Erian made his remarks.
“I don’t think you get all the way back to $20,000, but I do think that you need to establish a base whereby the people who really believe in the future of bitcoin consolidate and then that provides you a lift,” he said.
“I suspect that if you look 10 to 15 years down the road, we will have digital currencies, but the public sector will be involved in that. It will not be pure bitcoin,” he said. “But the blockchain technology, take that seriously.”
“It will be a means of exchange,” El-Erian said. “It’s not going to be a currency, it’s going to be another commodity-like asset out there that you can trade, and mainly as a store of value.”
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