(Use The Bitcoin) According to Mohamed El-Erian, Chief Economic Advisor at Allianz, said that cryptocurrencies are here to stay. During a conversation at the New York ‘Consensus’ conference, he showed himself very open about cryptocurrencies. The information was released by Reuters a few days ago.
Digital Assets Will Grow in the Future
During the conference organized by CoinDesk called ‘Consensus: Invest in New York,’ El-Erian said that virtual currencies will become widespread. However, he explained that cryptos will not be as dominant as several experts and analysts suggest.
About it, the Allianz chief said:
“I think cryptocurrencies will exist, they will become more and more widespread, but they will be part of an ecosystem. They will not be dominant as some of the early adopters believed them to be.”
At the same time, he mentioned that he is bullish about the future of the space due to the increased interest from institutional investors. There are several companies that are working in order to develop institutional-grade platforms and meet the demand of new clients.
During the current year, Bitcoin (BTC) and most virtual currencies have been in a bear market. Most of them lost more than 70% of their price and some specific coins dropped more than 95%. Although he remains positive about the future of the space, he confessed that they do not have the intrinsic attributes of a currency and that they are not going to replace money.
About the current bear market, El-Erian said that this is very healthy for the market. Prices were skyrocketing back in 2017 and the beginning of 2018.
Regarding blockchain technology and virtual currencies, El-Erian said that at the beginning he did not distinguish between both blockchain technology and cryptos. Nevertheless, as he was able to evolve, he learned in the process.
“I didn’t initially distinguish between cryptocurrency and the underlying technology. I treated it all as one. As I evolved… I learned in the process,” he mentioned at the event.
Blockchain technology can be used not only for digital assets but also to enhance many other areas in different sectors.
At the time of writing this article, most of the virtual currencies in the market are growing. A few days ago, the market reached new year lows as well as Bitcoin and other digital currencies.