Allianz Asset Manager’s Chief Economist Mohamed El-Erian was able to make money on Bitcoin after the 2018 crypto winter, but sold the coins “too early.” He announced this in an interview with CNBC.
According to the economist, he acquired a certain amount of bitcoins during the 2018 crypto winter, when the price of the coin dropped to almost $ 3,000.
“I felt compelled to buy it at this level, and I bought it. This was my entry point, ”said El-Erian.
He held the position until the end of 2020 and sold the coins when Bitcoin returned to the $ 19,000 level.A few months later, the price of digital gold surpassed $ 60,000.
The economist admitted that he misunderstood when to sell an asset because of “behavioral mistakes.”
El-Erian divided all bitcoin investors into three groups:
- fundamentalists who came to the industry for a long time;
- professional investors looking to diversify their portfolios;
- speculators involved in day trading…
He stated that he is ready to buy the first cryptocurrency again, but only when some of the speculators leave the market. In his opinion, in the long term, the first two groups of investors will become “a solid foundation for the market” because they are interested in technology.
The economist believes digital currencies are “very destructive” but are unlikely to ever replace the dollar.
“I think they will always exist in the ecosystem, but they will not become a global currency,” he said.
Given the systemic importance of cryptocurrencies, the economist recommends that industry representatives take the issue of market regulation seriously in order not to repeat mistakes. Big Tech…
“The crypto community needs to take concerns about illegal payments, fraud and platform stability seriously,” he added.
We will remind, in April, Mohamed El-Erian said that the hypothetical collapse of bitcoin should not negatively affect the financial markets, but it will challenge the paradigm, within which investors are guided only by liquidity.
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Allianz Asset Manager’s Chief Economist Mohamed El-Erian was able to make money on Bitcoin after the 2018 crypto winter, but sold the coins “too early.” He announced this in an interview with CNBC.
According to the economist, he acquired a certain amount of bitcoins during the 2018 crypto winter, when the price of the coin dropped to almost $ 3,000.
“I felt compelled to buy it at this level, and I bought it. This was my entry point, ”said El-Erian.
He held the position until the end of 2020 and sold the coins when Bitcoin returned to the $ 19,000 level.A few months later, the price of digital gold surpassed $ 60,000.
The economist admitted that he misunderstood when to sell an asset because of “behavioral mistakes.”
El-Erian divided all bitcoin investors into three groups:
- fundamentalists who came to the industry for a long time;
- professional investors looking to diversify their portfolios;
- speculators involved in day trading…
He stated that he is ready to buy the first cryptocurrency again, but only when some of the speculators leave the market. In his opinion, in the long term, the first two groups of investors will become “a solid foundation for the market” because they are interested in technology.
The economist believes digital currencies are “very destructive” but are unlikely to ever replace the dollar.
“I think they will always exist in the ecosystem, but they will not become a global currency,” he said.
Given the systemic importance of cryptocurrencies, the economist recommends that industry representatives take the issue of market regulation seriously in order not to repeat mistakes. Big Tech…
“The crypto community needs to take concerns about illegal payments, fraud and platform stability seriously,” he added.
We will remind, in April, Mohamed El-Erian said that the hypothetical collapse of bitcoin should not negatively affect the financial markets, but it will challenge the paradigm, within which investors are guided only by liquidity.
Subscribe to Cryplogger news on Telegram: Cryplogger Feed – the entire news feed, Cryplogger – the most important news, infographics and opinions.
Found a mistake in the text? Select it and press CTRL + ENTER
