Mohamed El-Erian Continues To Go Against The Grain
Mohamed A. El-Erian, is a former Egyptian-born banker and current chief executive officer at Allianz. He is currently President of Queens' College, Cambridge, chief economic adviser at Allianz Worldwide, and chief financial officer at PIMCO, the world's largest asset manager. At PIMCO, he is also a member of the company's investment management committee. He holds a bachelor's degree in finance and commerce from the University of Oxford and a master's in international business from the University of Cambridge.
Back in 2018 when the crypto market crashed of 2018 it became worse than the dot-com crash of 2000 as the market cap of all cryptocurrencies went down down 80%. But Mohammed said cryptos, but more importantly the technology, blockchain, isn’t dead. He went on to say at some point, we would see widespread adoption by all companies, both from the private and public sector.
NOTE: this was around the same time Jamie Dimon Chairman, CEO and President of JP Morgan Chase called Bitcoin a fraud, even threatening to fire staff who had any Bitcoin. During that time ordinary banks even went as far as closing accounts of people who have affiliation with cryptos.
And when it came to Bitcoin, Mohammed said Bitcoin would be a good buy at $5,000, but said Bitcoin wasn’t going to evolve into the currency many people think it could be.
From time to time, I see Mohammed talking on CNBC, Bloomberg and other financial outlets and because he is a macro guy, I tend to listen because he give me a perspective on government policies and higher level “what ifs” that I don’t get from other folks. Today he was on CNN and gave me a perspective that is different from what everyone is saying about where Bitcoin is headed.
Muhammed said the price of Bitcoin is being support by long-term holders. And so this time is different because those holders are looking to Bitcoin as a hedge against inflation and to diversify their risks. Case in point when people got their stimulus check, the speculated and bought Bitcoin. Muhammed said as a result, we will never see $4000 ever again. But because of the speculation, one has to anticipate the continued volatility. However, global central banks won’t allow Bitcoin to become a global currency and so the upside valuation for Bitcoin is not $400,000.
I myself thinks that we won't ever see Bitcoin at $20k ever again and we will see Bitcoin at $400,000, but that won't happen until 2025.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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