Allianz's chief economic advisor warns of China's dominance of the digital market
Financial advisor Mohamed El-Erian has revealed that he has invested in Bitcoin. The famed economist, who is the chief economic advisor at Allianz, told CNBC about his purchase in the crypto fall of 2018 - when bitcoin's price plummeted near $3,000 after its skyrocketing to the level of $19,000.
"I felt compelled to buy it," El-Erian said in an interview with CNBC
After holding Bitcoin in his wallet, Mohamed El-Erian said it's now about time to sell. The cryptocurrency has been on a record high-winning streak, hitting a record-high of $60,000.
"I don't fully understand why the $60,000 level for Bitcoin is more appropriate than the $68,000 level currently," he added.
When will you buy it again?
El-Erian divides Bitcoin investors into three groups: the "base" for long-term professional investors who want to diversify their portfolio, and the "speculators" for daily trading.
The economist said that opting to buy back Bitcoin would not be easy until some speculators leave the market.
"The core technology and investment model will be very influential in the coming period," he added.
Mouhamed believes Bitcoin has a bright future but denies that it will become a global currency to compete with the U.S. dollar.
"I think it will always exist in the ecosystem, but it won't be a global currency ... and it won't replace the dollar," he said.
Unlike cryptographers, the former PIMCO CEO doesn't believe Bitcoin can go away.
As big investors enter the market, El-Erian believes that sooner or later the digital currency industry will have to work with regulators to keep internet giants like Amazon, Google, and Facebook from being hit by the onslaught.
Mohamed El-Erian urged digital currency industry experts to participate in preliminary preventive regulatory discussions so that the mistakes of giant tech companies, which until recently failed to understand the importance of regulatory scrutiny, would be repeated and exposed to some. Severe tremors
He highlighted the need to take digital currencies seriously, especially with concerns about illegal payments, fraud, and the stability of trading platforms.
Al-Arian also warned of China's efforts to overtake the US and other western countries in digital currencies.
While the world’s largest economy is severely constrained by cryptocurrency-related activities, China has the potential to issue central bank digital currencies and introduce blockchain technology that supports many cryptocurrencies in the region. Others, such as intellectual property rights.
"If the West is not careful, China will set the standard for the world," Erian said.
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this is the regret of everyone when they sell too early hhhhhh
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