There has always been a disagreement between groups of people thinking BTC is the future and those who don’t. And recently, we have another Economist, Mohamed El-Erian, who recently said BTC won’t become the global currency and won’t replace the US dollar. He does believe that crypto will exist alongside the dollar. If this stands true, the idea of having a decentralized economy globally wouldn’t be possible. It is clear that people in power won’t allow the authority to slip out of their hands. So, Mohamed’s statement makes sense.
Bitcoin is not replacing the dollar
In a recent CNBC interview, El-Erian was asked about his outlook on cryptocurrencies and what the future withholds for them. To this, he said that even though BTC is a very disruptive force, it won’t ever replace the US dollar. Now El-Eiran is the chief economic advisor at Allianz, the parent company of which PIMCO is one of the largest investment companies. He was also the CEO and Chief investment officer there. These things are important as it shows that the person does have an understanding of what he says.
El-Erian also said a good thing that he doesn’t think regulators will be able to regulate BTC to oblivion. It will exist in its own ecosystem in the future. In fact, the economist is also an investor, and he entered the crypto market back in 2018 during the crypto winter. At the time, the price of Bitcoin was just $3,000, which was an insane entry point for a lot of investors. But he didn’t hold all the way through and sold his stash when BTC reached $19,000.
Investors in BTC
The economist also categorized investors in Bitcoin into three different types. First are the fundamentalist who invests in Bitcoin for the long haul. Then we have the professional investors who are here to diversify their portfolios and see BTC as another investment. And finally, the speculators who have little to zero knowledge about the subject but still speculate on it. And therefore, the first two types of investors are able to make it through the volatility of the market, and the speculators are shaken out.
What are your thoughts as the economist says that BTC won’t become a global currency? And do you think that he is right? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.