Earlier JP Morgan CEO Jamie Dimon compared cryptocurrency to “tulip mania” and set off a market slide when he called Bitcoin a "fraud". Dimon's moods are shared in mass and cryptocorrency is thought to be a bubble. But as it usually is, there is another opinion which can enlighten the ones who are worried by the current market situation.
So, will the market crash? Can there still be real profit? What shall you take into consideration if you want to invest in cryptocurrency? Below you may find answers which can reassure you in your intention to invest in cryptocurrency.
Allianz economic advisor Mohamed El-Erian says that the bitcoin price has far surpassed the cryptocurrency’s true value.
This month’s market contraction has prompted a new wave of bitcoin obituaries. The most notable one came from JP Morgan CEO Jamie Dimon, who called bitcoin a “fraud” and rehashed the tired Tulipmania comparison. Just yesterday, the Wall Street Journal published an article that claimed bitcoin is “probably worth zero.”
Lost in that shuffle was a bearish prediction from economist Mohamed El-Erian. The Allianz advisor is much less bombastic than Dimon, but told CNBC’s “Squawk Box” that bitcoin investors have priced in events that will never materialize. El-Erian conceded that bitcoin is a “disruptive” technology and stated he believes it will continue to exist as a means for peer-to-peer transactions, but he told the CNBC hosts that he thinks investors are far too optimistic about its long-term prospects. The current bitcoin price, he said “assume[s] massive adoption, which is not going to happen.”
He doubled down on that sentiment elsewhere in the segment, stating that central banks will not allow bitcoin to become a threat to the legacy financial system. “The current pricing assume massive adoption, and I don’t think governments will allow the amount of adoption that’s currently priced in,” he reiterated. When pressed for a specific valuation, El Erian stated a fair bitcoin price would be one-half or one-third of its present mark, which works out to about $1,300 to $2,000.
However, later last week El-Erian stated that “cryptocurrencies are not going away any time soon” during CME Group’s annual precious metals dinner, according to a report from Kitco Metals. Even though he argues it’s not “a substitute to gold,” he believes that cryptocurrency will remain a “part of gold’s problems” and that the precious metals industry must “pay attention to what cryptocurrencies are doing to your ecosystem.”
To learn more about our project, please follow us:
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
http://juntocoin.com/2017/09/20/bitcoin-price-triple-its-true-value-claims-allianz-economist/
Thanks for sharing the information.
Follow our project and participate in our Bounty program:))
https://crypto.tickets/
https://crypto.tickets/crypto.tickets%20whitepaper%20ENG.pdf
Cryptographic.tickets-it is a project to create a unique blockchain ecosystem that will forever change the sale of tickets for the massive Event industry. At the moment the ticket sales market is experiencing many problems, such as speculation on the secondary market, fraud and falsification of tickets, partial sales and the lack of a consolidated tool of a return ticket.