Although the crypto market has lost more than $600 billion of its capitalization since January this year, Mohamed El-Erian, the Chief Economic Advisor of Allianz feels that it is not even close to being dead.
Indeed, 2018 has been a rough year for digital currencies as the crypto market withered from $800 billion in January to $199 billion by the end of September. Bitcoin (BTC), the number one cryptocurrency by market capitalization, has lost almost 60% of its value, while Ether (ETH), the second biggest digital currency regarding market capitalization, has lost almost 80% of its value.
Mohamed El-Erian’s View
Mohamed El-Erian maintains that digital currencies and the blockchain technology are miles away from being declared dead. Instead, he sees a global acceptance from both public and private industries.
“Crypto is not dead, and certainly the underlying technology is not dead. We are going to see more widespread adoption, by both the private and public sector, of the blockchain technology and related technologies.”
At the beginning of July, El-Erian stated that BTC is an investment opportunity if the value went below $5,000.
In addition, El-Erian holds that adoption is not going to be as fast as crypto enthusiasts would wish it to be.
El-Erian’s view comes as the famous crypto investor Mike Novogratz highlighted that the crypto market has bottomed and that, “we retraced the whole of the bubble.” Nevertheless, this is not the first time the founder of Galaxy Digital Investment Bank has called in the bottom. He uttered a similar statement in July 2018 when he was interviewed at CNBC’s Cryptotrader Episode.
The host presenter, Ran-Neur, appears to have a similar opinion. On September 13 he tweeted that crypto prices may have bottomed, quoting data from Coinbase.