Crypto Lives, Says Financial Expert Mohamed El-Erian
The cryptocurrency community is in full-on panic mode. All over the markets, investors and analysts alike are speculating that this may finally be the end of crypto. Their theorizing may not be entirely crazy, either. Cryptocurrency prices across the board have fallen around 80% this year in market capitalization, and even the biggest of currencies are bleeding hard. These numbers mean that the cryptocurrency crash for this year is even worse than the infamous dot-com crash that happened way back in the year 2000.
But some analysts remain hopeful in spite of the gloom circling this bearish market. Mohamed El-Erian is an economic advisor who has won recognition all around the world for his expert advice and analysis. In a recent interview with Yahoo!, the professional outlined his opinion that cryptocurrency will see more public exposure in the coming months and years—not less. Specifically, he was clear in his conviction that cryptocurrency and blockchain technology will be used more and more frequently within both the public sector and the private.
Though some experts have pointed out that the main benefits of Bitcoin come from the blockchain ledger technology upon which it was built rather than the digital asset itself, El-Erian still remains optimistic for the coin as well as its technology.
Still a Bitcoin Fan
Back in June, the blockchain expert espoused his belief that Bitcoin would be an asset worth buying at the low price of $5,000 per coin. Now, he stands by this prediction, believing that the price of $5,000 is more than reasonable for the coin with this much potential for upwards gains and increasing widespread adoption.
This comes at a tough time for Bitcoin, which fell to around $5,800 towards the end of June and now hovers at a price of around $6,000. Experts speculate that Bitcoin falling significantly below the $6,000 mark could be an indicator of serious trouble for the Bitcoin market, as well as all cryptocurrencies and altcoins currently being traded en masse.
But so far, the currency remains around that $6,000 support level, occasionally climbing up only to fall back down into the same range once again. But in any case, the optimism shared by El-Erian is largely a very good thing for the cryptocurrency community, which could no doubt use more support from professional voices in the traditional world of finance and economics.
But El-Erian’s optimism did have its limits. In the Yahoo! interview, he spoke on the slow-burn of Bitcoin’s largescale adoption in the global community. In particular, the expert highlighted that cryptocurrency communities need to realize that the adoption process may not be “as big and as quick” as some of the more hopeful proponents of the cryptocurrency markets may like it to be.
In the long term, though, the analyst predicts that long-term adoption is absolutely possible. The value of the currency might not come from its existence solely as a currency, but as a multitude of new markets and technology sectors that might excite the public.