Economist and president of Queens’ College Mohamed El-Erian opined on reason why Bitcoin will not soar to $300,000
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President of Queens’ College, University of Cambridge, chief economic adviser at Allianz Mohamed El-Erian believes that the crypto sphere is showing a lot more stability now than before, naming a reason for that.
Also, he does not expect Bitcoin to ever turn into a global currency or one that will ever be worth $200,000 or $300,000.
“Bitcoin has been more stable than the stock market”
CNBC Squawk Box cohost Andrew Sorkin expressed a view that Bitcoin, in the current market recession, has been more stable than the stock market, or at least more than equities. He asked El-Erian if he agrees.
The economist believes that Bitcoin now is going through the typical cycle of any innovation: after a boom and overconsumption (the all-time high at around $69,000 last fall) and overproduction (referring to a great number of crypto-related products and investment funds), this period is now “ending in tears.”
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Crypto fans should be welcoming the current stability of Bitcon and crypto in general that the market has witnessed over the past couple of months, according to El-Erian.
Now, the economist believes, there is certainly a better basis for crypto.
“If you are a #crypto fan you should welcome the relative stability we have seen the last two months,” says @elerianm #bitcoin. “#crypto can and should survive as part of the ecosystem for payments…it just needs to be better regulated.” pic.twitter.com/CyVUSNwHfw
— Squawk Box (@SquawkCNBC) October 31, 2022
“Bitcoin is not going to $300,000,” El-Erian thinks, and here’s why
Mohamed El-Erian made it clear that he does not believe that Bitcoin will ever become a global currency because it will not receive mass adoption.
Referring to those Bitcoin enthusiasts who expect BTC to go as high as $200,000 or $300,000, because they expect the leading crypto to gain mass adoption, the economist said he does not believe in it.
