Mohamad El-Erian, the Allianz Chief Economist, believes the value of Bitcoin will get stable at $5,000 in an exclusive interview with Yahoo Finance. His opinion on Bitcoin seems a magnanimous view of cryptocurrency, opposed to the view of the most analysts.
The Subject Of The Value Of Bitcoin
As the value of Bitcoin continues to see a plunge in market price since the beginning of the year, it has been reported to have lost 80% of its value which it gained when its made an all-time highest value of almost $20,000 towards the end of 2017. The bearish trend has attracted a high level of optimism from crypto enthusiasts and aspersion from cryptocurrency oppositions as well.
Notably, Tom Lee still believe that cryptocurrency will again rise to $18,000 in 2018. Hermann Finnbjörnsson thinks Bitcoin will take the bullish trend to $11,000 by the beginning of November, courtesy of institutional contributions into the industry.
Meanwhile, aspersion on cryptocurrency has not ceased during this bearish trend, with cryptocurrencies being tagged “rat poison” from a renowned billionaire, Warren Buffet.
Equally, the price projection of non-enthusiasts has not been encouraging for the rest of the cryptocurrency community.
Luis Carranza, the founder of London Fintech Week, expects the value of Bitcoin to drop to $2,500 before it sees a surge in price again.
Nouriel Roubini, an American economist, famous for predicting the 2008 Stock Market Crash envisage a bubble burst driving the value to zero.
These and some other horrible predictions have trailed Bitcoin and other alternative cryptocurrencies of recent, especially from individuals in the financial institutions and economists.
Mohamad El-Erian’s Distinctive Prediction
Mohamad El-Erian, the Allianz Chief Economist opinion on the value of Bitcoin is a rare one to come from economists and an institutional worker.
Mohamad in an interview noted that cryptocurrencies are not dead even though he thinks that it is presently overvalued. Referring to Bitcoin, he stated it would get stabilised at $5,000 region and noted that unnecessary speculation was the major factor of the last bullish trend which caused the unwarranted purchase of the digital currency.
Notably, most speculative investors that joined the market at its peak a year ago are yet to reap the dividend of their investments as many are waiting for another bullish wave to cash in on their assets.
He further informed Yahoo Finance on cryptocurrency adoption, saying the reality is just getting dawn. He also said cryptocurrency adoption would not be as significant and easy as most people think. He noted that it is going to take a while and will be vital in building the ecosystem, but will not be a currency that most proponents envisage to see.