Many experts and financial advisers are nowadays commenting and giving statements on different cryptocurrencies. The cryptocurrency, which always remains in power and news headlines in bitcoin and the chief economic advisor of the top-rated financial service providing company alliance, Mohammed El Erian, has said that bitcoin may thrive to a large extent in future. Still, it is not going to be the global currency ever. He also mentioned that even if bitcoin is not the global currency, no government can rule it entirely out of the financial system. Therefore, it will remain in existence, but its popularity will decrease after an assured duration of time, maybe a few years.
United States dollars is the ultimate currency that dominates the Fiat currency world across the globe. However, in this economist's view, it will always remain in power being a Fiat currency and being a regulated currency all across the globe. The other created currencies of different countries are kept compared to the United States dollars, and therefore, nothing can rule it out of power. The economist who has given the statement is the CEO and the co-chief investment officer of the corporate parent company PIMCO. He is also one of the largest investment managers and belongs to Egyptian American ancestry. He also has the post of president of Queens College, Cambridge University. He stated that one of the fundamental reasons that bitcoin is not likely to become a global currency ever in the future is its disruptive nature and the forces that affect its prices. He also mentioned that it would remain in the ecosystem, but its global dominance over the other cryptocurrencies will fall apart. Also, he stated that it is impossible to regulate the cryptocurrency bitcoin out of the ecosystem forever wholly.
Talking about his experience with cryptocurrencies, he mentioned that he also purchased a specific bitcoin, standing at $3000 in the crypto winter of 2018. At that time, cryptocurrency started getting a little bit of fame, and therefore, the prices were constantly increasing but in small numbers. He said that he felt compelled to purchase bitcoin because it was in trend back in time. However, he stood up to the stand of keeping a cryptocurrency bitcoin till it was 2020. Finally, when Bitcoin reached $19,000, he sold all of his bitcoin. He said that his judgement about the future of cryptocurrencies was not entirely accurate due to the behavioural changes in bitcoin prices. Hence, he is now no longer the holder of bitcoin, but he holds a very significant post in every famous company in the world.
According to him, we can categorise the bitcoin invested into three types. The first one is the fundamentalist who believes in investing in cryptocurrencies for the long haul. Another type of cryptocurrency investor we can come across in the market is a professional investor who diversifies the portfolio. The last type of cryptocurrency trader that you can find in the market of cryptocurrencies is the speculator. In his beliefs, the most vital foundation of the cryptocurrency market is the first two types of investors in the long term. The rest are the ones who are speculators, and he will only feel comfortable purchasing other bitcoin if the speculators are shaken out.
Also, he provided his views about regulating cryptocurrencies. He said that the regulators must engage with the cryptocurrency industry so that the perfect medium of payment and the trading opportunity. He said that bitcoin is becoming mainstream in the coming future, and therefore, the regulatory system can help it work towards the common goal of achieving economic upliftment. Recently, some viral tech giants got such popularity, but they did not engage themselves in the field's regulatory system. It must not be allowed to happen with cryptocurrencies. He also mentioned that cryptocurrencies need to be taken seriously to consider their concerns regarding illicit payments.
Also, there is considerable concern about commenting fraud with cryptocurrencies. The stability of payments will also be at risk if cryptocurrencies are not regulated soon. Also, in August, he mentioned that stores who accept cryptocurrency. It is time that they take advantage of this opportunity to work for the common good of people. Bitcoins can undoubtedly work in the innovation and modernisation of the payment system, and therefore, the system must use the opportunity.