Economist and president of Queens’ College Mohamed El-Erian opined on reason why Bitcoin will not soar to $300,000
Chief Economic Adviser to Allianz Mohamed El-Erian, President of Queen’s College, University of Cambridge, believes that the crypto sector is now showing a lot more stability than before, citing one of the reasons.
Also, he does not expect Bitcoin to ever turn into a global currency or one that will ever be worth $200,000 or $300,000.
“Bitcoin has been more stable than the stock market”
Andrew Sorkin, co-host of CNBC Squawk Box, expressed a view that bitcoin, in the current market downturn, has been more stable than the stock market, or at least outperformed equities. He asked El-Erian if he agreed.
The economist believes that Bitcoin now is going through the typical cycle of any innovation: after a boom and overconsumption (the all-time high at around $69,000 last fall) and overproduction (referring to a great number of crypto-related products and investment funds), this period is now “ending in tears.”
According to El-Erian, crypto fans should welcome the current stability of bitcoin and crypto, which the market has seen over the past few months.
Now, the economist believes, there is certainly a better basis for crypto.
“Bitcoin Isn’t Going To $300,000,” Thinks El-Erian, And Here’s Why
Mohamed El-Erian clarified that he does not believe bitcoin will ever become a global currency as it will not gain mass adoption.
Referring to those Bitcoin enthusiasts who expect BTC to go as high as $200,000 or $300,000, because they expect the leading crypto to gain mass adoption, the economist said he does not believe in it.
