29 Apr 2018 Anthony Lehrman
Bitcoin’s Price Drop Would Lead to Mass Adoption, Mohamed El-Erian States
Although Bitcoin is the most famous cryptocurrency in the world, it is still fighting for the positive views of many leading international economists, like El-Erian, one of the most influential financial professionals in the world.
The renowned economist doesn’t own any Bitcoin, but a price of $5000 might be able to change his mind.
Last year was a record-breaker for Bitcoin when it reached a $20 000 market price, a result of the boom of cryptocurrency launches. The skyrocketing price didn’t last long, as threats of regulations and fraud incidents led to the coin’s 70% price drop.
El-Erian is skeptical about Bitcoin’s chances of reaching its highest price ever once again. He believes that cryptocurrencies should establish a base where those who believe in Bitcoin’s bright future gather together and aim to boost the coin.
Bitcoin is currently trading at $5,885, a further 4% price drop in the last 24h, reaching over 20% decrease during the month.
Looking into the future of cryptocurrencies, the financial guru predicts they will be treated as commodities, rather than currencies. He explains: "I suspect that if you look 10 to 15 years down the road, we will have digital currencies, but the public sector will have involvement in that. It will not be pure bitcoin, but the blockchain technology, take that seriously."
He also believes that cryptocurrencies will be adopted at a slower rate, despite the fast development of the industry.
El-Erian is not the only one who has mixed feelings towards Bitcoin. Douglas Boneparth, president of Bone Fire Wealth and a Bitcoin miner himself, believes that large cryptocurrencies are speculative and investors should be cautious before making any investments.
The founding partner of Stash Wealth, Priya Malani, further states that Bitcoin is somewhat a gamble than an investment.
The dynamic nature of the crypto market could hold many surprises for its future development. The business world is yet to see and discuss the future of cryptocurrencies and how Bitcoin’s role and the one of the altcoins are going to change.