Allianz Chief Economic Advisor Says Cryptocurrencies Will Become Widespread But Not Dominant
Mohammed El-Erian, the chief economic advisor of Allianz, has affirmed today, November 27, that he believes in the future of cryptos. According to him, there is a great chance that cryptocurrencies will become more widespread in the near future but at the same time, he simply does not see them as becoming the dominant force in the market.
He thinks that they are more like commodities instead of currencies, a view that he has already expressed before. He cites this as one of the main confusions that people have when they think about cryptos. He is sure that they are an asset class instead of a currency and a lot of people are only wrong about it.
Cryptos, he said, will be a part of the ecosystem. They will never take over the world but will have their importance in the financial market as important assets. He affirms that the early adopters of crypto are too enthusiastic and that their predictions are not right.
He acknowledges the lack of trust in the financial system that ended up creating Bitcoin in 2008 but at the same time, he does not believe that cryptos are necessarily the answer for this lack of trust in the system. They will not change the economy forever, he believes, only make it different.
During the interview, El-Erian affirmed that he viewed institutional investor’s interest in the crypto industry as something that will help the market to survive but that would also indicate that this is the kind of people who will save the industry, not the retail investors.
Will crypto have an important future? He seems to believe it. However, the Allianz chief economic advisor does not buy Satoshi’s prophecy. According to him, what we have here is just another financial asset. Who is right, him or Satoshi? Only time will tell.