Allianz’s Mohamed El-Erian has toned down his statements on Bitcoin’s future after saying its value should halve.
Allianz-rsquo;s chief economic adviser Mohamed El-Erian has joined Bitcoin skeptics appearing to soften their stance on the cryptocurrency.
-ldquo;...It's more of a commodity than it's a currency,-quot; 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.
When El-Erian made his previous comments in September, Bitcoin was trading around $4,000.
He had forecast prices would -ldquo;explode,-rdquo; but that adoption by the masses is -ldquo;not going to happen.-rdquo;
With Coinbase adding 100,000 users daily in November, El-Erian nonetheless voiced concerns about longer-term adoption prospects.
-ldquo;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,-quot; he added to CNBC.
For his part, Dimon had declared he would no longer mention Bitcoin at all after his infamous -ldquo;fraud-rdquo; accusations went viral and caused a price dip. Other JPMorgan senior executives have gone on record saying the banking giant is -ldquo;open-minded-rdquo; on the issue of cryptocurrency in general.