Mohamed El-Erian, the Chief Economist of Allianz at a conference said that cryptocurrency will persist the current bear market because it is here to stay, but they won’t replace the fiat currency so soon.
The chief economist during the Consensus: Invest conference in NY said that digital currencies will exist. They will become more widespread, still, they will be part of an ecosystem. He also said that cryptocurrencies will not dominant the fiat money, as some experts believed them to be.
Bitcoin cannot replace fiat
He further added that bitcoin (BTC) doesn’t have the permanent attributes of a money. So it cannot take the place of fiat currency because the digital currencies are a commodity, not money.
The ex co-chief investment officer of PIMCO stated a rotation is going on and retail is becoming more reasonable. The ebullience is after us and the institutions are planning to establish a beachhead and that is good for a long-term.
During the conference, he restated his statement from September this year, when he urged that crypto was not dead in the mid of an extended market downfall. He also highlighted that the latest market downfall was not unexpected because the crypto market experienced a cycle of overindulgence that led bitcoin price to surge nearly $20,000. It was followed by a responsive period of excess production that led to the current bear market.
Barry Silbert on the recent crypto downfall
Barry Silbert, the founder of Digital Currency Group said that the market’s recent downfall is the ineluctable increasing pain that happens in any new industry. He also explained that having witnessed past bubbles and market fluctuations, Barry described the current bear market a fantastic opportunity.
He also said that the game-changing activities are occurring behind the scenes that are not seen in the market’s dull obsession with the bitcoin price changes. He further explained that behind the scenes the firms are being established to develop infrastructure to let the on-boarding of a completely new category of the investors.
He concluded by saying that’s the potential investors, so behind the scenes, no one has slowed down.
The Venture capitalist, Tim Draper remains undeterred by the latest bitcoin surge. Completely opposite to the El-Erian’s assessment, Tim predicts that cryptocurrency will very soon replace the fiat currency to make up to two-thirds of the world’s complete currency value.