Mohamed El-Erian, the head economy adviser of Allianz, has changed his stance on cryptocurrencies.
The representative of the financial services company stated in the last month that Bitcoin and other cryptocurrencies should not be worth their commanding prices on the market. It is a position that was shared by other well-established financial powerhouses, like Jamie Dimon from JP Morgan.
The advisor, who until a few months ago compared the currency to a commodity, now believes that Bitcoin and other cryptos are actually looking for market stability. His new stance comes at the moment when the leading digital currency, Bitcoin is reaching the $7,500 mark. The inflated prices worries are being left behind by investors because of the recent announcement by Wall Street juggernaut CME Group to begin trade in Bitcoin by the end of this year.
Mohamed El-Erian first expressed his concerns about Bitcoin back in September when the currency was commanding at $4,000 a unit. At that time, the advisor believed that the price of currency could soar, but if it’s not used massively it would eventually lose its impact. Those concerns has been debunked with the most recent data collected by Coinbase that reveal that at least 100,000 new users join daily the cryptocurrency market.
El-Erian has expressed new long-term concerns regarding the price, as mass adoption and the ability of the market to keep the price consistent with an ever-changing market grow. The advisor thinks that this should be the main concern for short-term investors and digital currency holders.
Jamie Dimon from JP Morgan has stated that he won’t be dipping his toes in the digital currency arena after his previous statements stirred the cryptocurrency market and some of his senior executives expressed interest in cryptocurrencies and blockchain technology.