Cryptocurrencies Will Endure the Current Downturn
Cryptocurrencies will manage to get through and survive although they are currently experiencing quite a collapse in value in 2018. Additionally, they are going to experience increased acceptance once institutional investors start entering this sector. These are the words of Mohamed El-Erian, the Chief Economic Adviser of Allianz.
Those words were spoken at “Consensus: Invest in New York” which was a conference hosted by CoinDesk. During the conference, it was stated by El-Erian that the participation of the institutional investors in the sector of crypto projects is a positive development even if the retail investors are beginning to move away because of falling prices.
El-Erian believes that cryptocurrencies will continue to stay while their usage will be spreading wider. In fact, cryptocurrencies can become an element in an entire ecosystem. However, cryptocurrencies do not have what it takes to become dominant as was believed by some of the early adopters.
El-Erian also stated that he had opened a bitcoin account for $400. However, that was only for testing purposes.
El-Erian went on to focus on the fact that cryptocurrencies are just commodities. They are not currencies since cryptocurrencies are lacking the intrinsic characteristics of currencies. As a result, they will not be replacing money.
It is also a fact that virtual currencies are experiencing a fall since 2018 started. One reason for it is that regulatory agencies are increasing their scrutiny of cryptocurrencies. At the same time, investors have become wary of the same after various cryto exchanges were hacked and cryptocurrencies stolen.
Source: https://www.theeconomyclub.com/cryptocurrencies-will-survive-ongoing-slump/
