El-Erian estimates that it might be worth buying Bitcoin under $ 5000
Mohamed El-Erian, chief economist of insurer Allianz (DE: ALVG) and former director of PIMCO, the world's largest bond fund, told CNBC today that it might be worth buying Bitcoin if it falls under the $ 5,000.
"I do not think it will go back up to $ 20,000, but I think it will build a base where people who truly believe in the future of Bitcoin will consolidate, which can form the basis for a recovery." he said.
Answering a question about this, El-Erian said he does not own Bitcoins right now, but that he might be interested under the $ 5,000.
Note that this threshold of $ 5,000, in addition to being highlighted by El-Erian and constitute a major psychological threshold, is also according to some experts the break-even point of mining, which is also a factor likely to support the price above $ 5000 (Minors no longer sell the proceeds of their activity if the price falls below the breakeven point, which deprives the market of the largest natural source of sellers, pushing the price up).
El-Erian has also been rather optimistic about the future of crypto-currencies, believing that they will never really be used as currency, but that they are still there to last: "If we look at 10 or 15 years into the future, I think crypto-currencies will still exist, but the public sector will be involved. It will not be just Bitcoin, "he explained.
Finally, it should be noted that he has also stated that he believes that crypto-currencies will no doubt play a role of store of value and means of exchange in the future.
