Allianz Economic Advisor Says Argument for Bitcoin Is Evolving — More Companies Will Embrace BTC as Form of Payment – Markets and Prices Bitcoin News

Mohamed El-Erian, chief economist at Allianz, believes that investing in bitcoin has reached a tipping point. He thinks other companies will follow Tesla’s lead and use bitcoin as an investment tool as well as a means of payment.

Alliance economic advisor says bitcoin argument is now positive

Economist Mohamed El-Erian outlined the main reasons to invest in bitcoin in an interview with CNBC last week. Mr. El-Erian, an Egyptian-American businessman, is president of Queens College, Cambridge University. He is also chief economist of Allianz, the parent company of PIMCO, one of the world’s largest investment managers, where he was CEO and Co-Chief Investment Officer.

The arguments for bitcoin continue to evolve. It used to be a negative argument, the senior economic advisor said.

He said the reason for investing in bitcoin used to be: if you don’t trust the system, invest in bitcoin. They are afraid of inflation, loss of value and investing in bitcoin. Government bond yields are too low, put bitcoin in your basket to reduce risk. El-Erian continued:

Now suddenly we have these reasons, and Tesla says there are positive reasons: a form of payment, an investment vehicle. It’s the hub.

He went on to say that Tesla is showing the world that bitcoin can now be viewed not only as an investment vehicle, but also as a form of payment, which is why the price of the cryptocurrency hit a record high last week.

In its statement to the Securities and Exchange Commission (SEC), Tesla said it bought $1.5 billion worth of bitcoins in January. The company also said it will soon accept BTC as a payment method for its products.

El-Erian noted that several private sector companies are considering using bitcoin as a payment and investment tool, but more officials are warning about the risks associated with bitcoin.

In an interview with CNN on Monday, El-Erian asked if other companies would follow Tesla’s lead and adopt bitcoin: I think you’ll see more and more companies doing this. He explained that this is because they do not know how else to mitigate the risk. So this is part of the distortions in the financial markets that we see in general. A number of analysts also expect many companies to follow Tesla and get into bitcoin.

Do you agree with the Alliance’s economic advisor? Let us know your comments in the section below.

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