Bitcoin, Allianz’s El-Erian Softens Stance on Crypto

When El-Erian made his previous comments in September, Bitcoin was trading around $4,000.

Allianz’s chief economic adviser Mohamed El-Erian has joined Bitcoin skeptics appearing to soften their stance on the cryptocurrency.

In a manner similar to JPMorgan’s Jamie Dimon, El-Erian, who previously stated Bitcoin should be worth 50 percent of its value, told CNBC it was “trying to find stability.”

“…It’s more of a commodity than it’s a currency,” he said, comparing Bitcoin to a commodity rather than a currency.

As Bitcoin reaches new all-time highs of $7,500, bubble concerns many expected are taking a back seat in light of a key decision by Wall Street giant CME Group to offer Bitcoin futures trading by the end of 2017.

He had forecast prices would “explode,” but that adoption by the masses is “not going to happen.”

With Coinbase adding 100,000 users daily in November, El-Erian nonetheless voiced concerns about longer-term adoption prospects.

“My major concern over the long term is: is the assumption in the pricing about adoption consistent with reality? That’s the issue that investors should ask if they’re holding Bitcoins for a couple of months,” he added to CNBC.

For his part, Dimon had declared he would no longer mention Bitcoin at all after his infamous “fraud” accusations went viral and caused a price dip. Other JPMorgan senior executives have gone on record saying the banking giant is “open-minded” on the issue of cryptocurrency in general.

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