Allianz’s chief economic adviser, Mohamed El-Erian, said that the argument for investing in Bitcoin has reached a critical point. He saw more companies follow Tesla’s example and regard Bitcoin as an investment tool and payment method.
Allianz’s economic adviser says Bitcoin’s argument is now positive
In an interview with CNBC last week, economist Mohamed El-Erian emphasized the key reasons for investing in Bitcoin. The Egyptian-American El-Erian is the dean of Queen’s College at Cambridge University. He is also Chief Economic Advisor to Allianz, the parent company of one of the largest investment management companies, PIMCO, where he served as CEO and Chief Investment Officer.
“The debate about Bitcoin is evolving. The chief economic adviser said.
He explained that the reason for investing in Bitcoin used to be “you don’t trust the system and invest in Bitcoin. You are worried about inflation, depreciation, and invest in Bitcoin. The yield on the national debt is too low. Please put Bitcoin in the “risk mitigation” tool. Erian Erian continued:
Now, all of a sudden, we have these reasons, and Tesla says there are positive reasons for this: payment methods, investment tools. Now, this is the key.
He further asserted that Tesla showed the world that Bitcoin can now not only be seen as an investment tool, but also as a payment method, which is why we saw the price of cryptocurrency soar to The reason for the highest level in history.
In a filing with the U.S. Securities and Exchange Commission (SEC), Tesla revealed that it purchased $1.5 billion worth of Bitcoin in January. The company also stated that it will soon accept BTC as a payment method for its products.
El-Erian pointed out: “Some private sector entities consider Bitcoin as a payment and investment method, and more officials warn of its risks.”
In an interview with CNN on Monday, El-Erian answered questions about whether other companies will follow Tesla’s example and adopt Bitcoin, “I think you’ll see More companies do this. He explained that this is “because they don’t know how to mitigate risks, so this is part of the distortions in financial markets that we generally see. “Many analysts also expect that a large number of companies will follow Tesla’s move into Bitcoin.
Do you agree with Allianz’s economic adviser? Let us know in the comments section below.
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