Key Takeaways:
- Famed economist El-Erian says he invested in Bitcoin in 2018 but sold way too early
- He is still bullish on the cryptocurrency and thinks the future of bitcoin is bright
Economist El-Erian Invested in BTC in 2018 and Sold in 2020
Famed economist Mohamed El-Erian projects the future of bitcoin to be positive as the price continues to advance. His positive remarks on the leading cryptocurrency were made in a CNBC interview on Monday.
Moreover, he said he had invested in bitcoin when the market crashed in 2018. Back then, Mr. El-Erian who is the chief economic advisor of Allianz, had purchased bitcoin when it was worth about $3,000 apiece.
“I felt compelled to buy it — I really did,” Mr. El-Erian said in the interview. “I felt like I had framed it. I had this level, I had an entry point.”
The seemingly low level of $3,000 for a single bitcoin in 2018 arrived after the token jumped to over $19,000 a year earlier. While the entry point of the economist has been appropriate in hindsight, his timing to sell could’ve been better.
He held on to his position, an unspecified amount of BTC, until late 2020 when bitcoin climbed back above $19,000. What happened after is that bitcoin continued shattering records and reached an all-time high of $69,000 this year.
Bitcoin is “a Very Disruptive Force” and Can’t be Outlawed, He Says
While presently the price of bitcoin is trading near $61,000, Mr. El-Erian thinks there is more room to the upside. As the markets expands and gains traction, he is looking for his next entry point. Before that, however, the chief economic advisor wants to have some conditions met.
In more detail, he says bitcoin’s price needs to become more stable. In other words, he would like to see more “fundamentalists” and long-term investors holding the original cryptocurrency. That would reduce the wild swings on a daily basis.
“The key thing here is the underlying technology and the model,” he said. “And those two things are going to be very influential in the period ahead.”
“I think it will always exist in the ecosystem but it’s not going to be a global currency,” he also commented. “It’s not going to replace the dollar.”
In conclusion, the economist highlighted he sees bitcoin as “a very disruptive force.” To this end, Mohamed El-Erian expects regulations to allow the rally in crypto markets to continue. Bitcoin “cannot be regulated out of existence,” he noted.