Investors who cashed in on their Bitcoin (BTC) holdings before the token hit the USD 20,000 threshold have been consuming humble pie – with one confessing, “When I sold bitcoin at USD 19,000. I thought I was the smartest person around.”
The statement came in an interview with Mohamed El-Erian, a notable economic adviser at Allianz and the President of Queens’ College at the University of Cambridge, directed by the Centre for Financial Innovation.
“I was asked on a TV show when bitcoin was at USD 19,000, ‘Would you be a buyer?’ And I said I would not buy until the price goes [down] to below USD 5,000.”
El-Erian then went on to reveal that he did indeed buy at USD 5,000, but later decided to cash in when the token reached the USD 19,000, thinking that his move had been “smart.”
Nevertheless, he acknowledged that he had neglected to look beyond the “technicals.”
“Little did I know that in the next four weeks, it would double in price and make me look like a complete idiot!”
And the economist continued that a BTC takeover of the global economy might not happen – or take the form many people predict, believing,
“I’ve always believed that cryptocurrencies will belong in a payments ecosystem, not become a global currency.”
El-Erian has waited relatively upbeat on crypto for several years and was one of the few mainstream voices who foretold a comeback for bitcoin and the rest during the dark days of late 2018 – the heart of long crypto winter.
In September 2018, he forecasted that the world would soon see “widespread adoption, by both the private and public sector.”
Meantime, Cathie Wood, ARK Investment’s CEO and Chief Investment Officer, recently lectured about an observation from Renaissance Macro Research Chairman Jeff deGraaf, who considers that he had “never seen anything like” the BTC recovery.
She replied that deGraaf had explained that it “usually takes a generation, and by that we mean 10-20 years” for an asset to return to a peak in the way BTC has in recent months.
Wood continued that as states strive to “inflate their way out of” the current economic crisis, crypto could provide a hedge, commenting,
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