Mohammed El-Erian bitcoin is a buy at 5K

Allianz’s Mohammed El-Erian – Bitcoin Attractive at USD 5K

Bitcoin, News

Mohammed El-Erian sees bitcoin buying opportunityCrypto prices have been under pressure all year. Bitcoin has slid nearly 70% lower since it hit record highs last December. This has left many bitcoin investors with big losses. Now Mohammed El-Erian thinks a bitcoin buying opportunity might be coming. He told CNBC recently that the USD 5K level could be a good entry point.

Mohammed El-Erian isn’t a name that comes up too often in connection with cryptos. He spent most of his career co-managing Pimco, with Bill Gross. Now it looks like the multi-decade bull market in debt is over. Today Mr. El-Erian works as an adviser to Allianz. He made his most recent comments in a personal capacity.

Mohammed El-Erian Sees A Base Forming

Although Mr. El-Erian sees USD 5K as a good place to enter the Bitcoin market, he doesn’t envision another breakneck rally driving the price higher. He said this to CNBC in a recent interview, “I don’t think you get all the way back to $20,000, but I do think that you need to establish a base whereby the people who believe in the future of Bitcoin consolidate and then that provides you a lift.

One of the biggest problems that cryptos have faced is price volatility. The wild fluctuation in prices has probably kept many investors on the sidelines. Normally, currencies don’t rise or fall by double-digit percentages in a day. Most of the major cryptos display this kind of price action on a regular basis.

While Mr. El-Erian wasn’t especially bullish on bitcoin’s price, he did see it as a durable asset. He said this to illustrate his point, “I suspect that if you look 10 to 15 years down the road, we will have digital currencies, but the public sector will have involvement in that. It will not be pure Bitcoin. But the blockchain technology, take that seriously.

Big On Blockchain

Mohammed El-Erian joins numerous other top-level professionals in his optimism for blockchain technology. Numerous companies in the financial sector are looking for ways to integrate blockchain into their businesses. JP Morgan has patented a blockchain-based system that would challenge SWIFT.

There are other systems that also help banks to connect directly. Bitcoin has been used by an Argentine bank to facilitate international transfers. Despite the fact the BIS has asserted that bitcoin can’t be scaled up to replace the existing financial system, it seems to be working in some niche applications already.

Outside of finance, blockchain is equally popular. Numerous logistics providers see the potential for it to radically change how global shipments are handled. Bitcoin and the other cryptos that are popular at the moment could be a new way to store value. The blockchain is creating interest at the highest levels of global industry and looks like it is here to stay.

Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.

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