Allianz Senior Advisor: “I bought bitcoins in 2018 but sold them too early”

Mohamed el-Erian, senior economic adviser at the German insurance company Allianz, said that in 2018 he bought bitcoins at $ 3,000, but sold them too early at $ 19,000.

In an interview with CNBC, Mohamed El-Erian said that he sold his bitcoins at the end of 2020, when the price of the first cryptocurrency returned to the $ 19,000 mark. He admits that he was too hasty, because in just a few months the BTC rate reached $ 60 000.

The economist also said that he divides cryptocurrency investors into three categories:

1. “Fundamental” who buy bitcoin for a long time.

2. Professional looking to diversify their portfolio.

3. Speculators who are trying to make a profit over a short distance.

According to El-Erian, he may well invest in bitcoin again. However, there are too many speculators on the market now, so it is waiting for the market to shake them off. That is, when a significant drop in the bitcoin rate forces them to sell their assets. At the same time, the investor notes that the first two categories are very strong and, in the long term, will lead to the growth of the cryptocurrency market.

The economist also expressed the view that blockchain and cryptocurrencies can indeed have a devastating impact on traditional financial systems. However, he does not yet see the possibility of turning bitcoin into a global reserve currency that can push the position of the US dollar.

“I think cryptocurrencies will remain forever, but they will not become global currencies. I do not think that such assets will be able to replace the US dollar, ”concluded Mohamed el-Erian.

In April, El-Erian said that cryptocurrencies have taken such a solid position that in the event of an unexpected collapse of Bitcoin, it could shake the entire global financial system.