Mohamed El-Erian, chief economic advisor of Allianz, said during the conference “Consensus” that the cryptocurrencies were gone to last. His optimistic point of view comes despite the sharp drop in the price of digital assets recorded since the beginning of the year.
Institutions that settle in the crypto sphere
Mr. El-Erian believes that the recent decline in crypto-markets was predictable, since it is part of a cycle. He considers that this is a healthy correction for the market.
And the rise in demand for digital assets, which had pushed Bitcoin to reach $ 20,000 in December 2017, would, according to him, be the cause of the decline recorded this year.
Despite the sluggishness of the crypto-markets, which has led savers to be more cautious, he believes the interest of institutional investors is growing. And the participation of different institutions in various crypto-projects would be a positive sign:
“We saw a rotation: savers became more reasonable. The period of excitement is now behind us, and institutions are starting to put a foot in the ecosystem, which is positive in a long-term perspective, “said the leader.
“An integral part of an ecosystem”
Mr. El-Erian revealed to have opened a BTC portfolio with $ 400 to see how the Bitcoin network worked.
He believes that digital currencies should benefit from an increased adoption rate in the coming years:
“I think that crypto-currencies will continue to exist, that they will be more and more widespread, but that they will be an integral part of an ecosystem. However, they will not be as dominant as what the “early adopters” have thought so far, “he said.
The officer added that digital assets were not going to replace fiduciary currencies. It was this approach that made him skeptical about Bitcoin – an asset that had been presented to him as a universal currency, but which did not, in his view, have the intrinsic characteristics of a change.