Chief economist at Allianz: cryptocurrencies will beat the bears, but will not detract from Fiat

Cryptocurrencies will survive the current mass sale because this technology is with us for a long time. But soon they will not be able to outshine Fiat currency. This is the opinion of the chief economist of Allianz Mohamed El-Arian. As he said at the new York conference Consensus: Invest, cryptocurrencies will continue to conquer the market. They will be more spread out and will become an integral part of the ecosystem. However, the economist is skeptical regarding the capabilities of the crypt to replace the existing financial system.

In his opinion, the main reason here lies in the fact that cryptocurrencies are commodities, not currency. They lack the basic properties of money, so they will not be able to replace currency. Former investment officer at PIMCO also believes that despite the current bear market, the industry observed motions due to the growing interest from institutional investors.

There’s some rotation of funds, and the retail trade is becoming more reasonable. We have passed the stage of saturation and is now on the market are fixed institutionally. This is a great signal in the long term.

El-Erian also confirmed his words from September of this year, when in the middle of a prolonged drop in the stock market he called cryptocurrency is not dead. However, writes the CCN, at the time the expert has stated that crypto-currencies were greatly overvalued. Real value of Bitcoin is not more than 5 thousand dollars.

For him, the recent market collapse was not a surprise, because the peak point with the uptrend to 20 thousand was nothing but a cycle of excessive consumption. It was followed by a rapid decline that continues until now.

Kryptonite not be afraid of a bear market

El-Erian argues that such a painful collapse for many capturadora really is not unusual. It is quite normal for the market. His opinion is shared and is the founder of Digital Currency Group is Barry Silbert, who believes such fluctuations are natural for any new things. More data look at cryptodata.

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