Allianz Chief Economic Adviser Says Cryptocurrencies Are Not Dead
The cryptocurrency world is being defended by several important figures in the space. This time, Mohamed El-Erian, chief economic advisor of Allianz, said that cryptocurrencies and blockchain technology are not dead. He gave these comments after a negative year for the virtual currency market.
Mohamed El-Erian Bullish on Cryptos
Since January the whole market lost over $600 billion dollars and most of the cryptocurrencies lost between 70% and 95% of their value, if not more. Altcoins have been the most affected virtual currencies.
But Mr. El-Erian sees future potential in the market. In some years, he thinks that the public and private sectors will start to embrace these virtual currencies and technology.
He commented on the matter:
“Crypto is not dead, and certainly the underlying technology is not dead. […] we’re going to see more widespread adoption, by both the private and public sector, of the blockchain technology and related technologies.”
Back in July, El-Erian commented that it would be a great opportunity to buy if prices fall under $5,000 dollars, something that did not happen. He then said that adoption is not going to be as fast as cryptocurrency supporters would like it to be.
He mentioned that it is going to take a long time and play a role in the ecosystem. However, it would not be as fast as some individuals and proponents would like.
There are other experts such as Mike Novogratz that think that the markets have already bottomed. For Novogratz, since the beginning of the year, we have retraced ‘the whole of the bubble.’ He said that during CNBC’s ‘Cryptotrader’ that also featured Ran Neu-Ner.
At the moment, Bitcoin (BTC) is operating close to $6,500 and has a market capitalization of $112 billion dollars. The whole cryptocurrency market capitalization is operating stable around $200 billion dollars after falling down to $180 billion some days ago.