The world’s most known financial commentators and investors say that Bitcoin cannot be considered a currency. Mohamed El-Erian sentenced that basically currencies are store of value that must be stable to work as an accurate exchange and be more predictable.
El-Erian, the chief economic advisor at the German financial institution Allianz, said:
“Bitcoins aren’t there yet, they’re still trying to find stability so it’s more of a commodity than it’s a currency”.
In September, El-Erian believes Bitcoin that glorifies and the price fluctuations reflect an assumption that the cryptocurrency spread widely. Meanwhile, he alleged that would not occur.
Additionally, he stressing on this assertion, telling, that investors in Bitcoin may be waiting for overall adoption. Since, firms and central banks would begin accepting that could be wrong.
El-Erian was more concerned about, “the assumption in the pricing about adoption consistent with reality”.
Moreover, El Erian is not the major figure to view Bitcoin as more of a commodity than a currency. Also including, governors of Bank of Korea and Bank of Mexico gave same estimations.