Allianz Chief Economic Advisor: Bitcoin is a commodity

Bitcoin is not a currency, thinks Mohamed El-Erian, who is a Chief Economic Advisor in Allianz. Explaining his position on the recent economic forum in Singapore, he told:

“A currency serves as a predictable store of value, and serves as a medium of exchange that's pretty stable in value as well — bitcoins aren't that there yet, they're still trying to find stability so it's more of a commodity than it's a currency.”

As CNBC reminds, last month the same analyst told that Bitcoin is overestimated and it does not deserve such prices (he was talking about $4000, BTC has just surpassed $7000 this morning).

However, Allianz is the third largest financial service by revenue, and the opinion of its experts should not be underestimated. Maybe Bitcoin is a currency, but yes, presently it lacks the stability of fiat money.

Similar opinion about store of value was expressed by the former President of Bundesbank. As he told almost a month ago, Bitcoin lacks a store of value. However, many would disagree with both statements and consider Bitcoin a currency no worse than dollar. For example, McAfee once called dollar even a bigger fraud than Bitcoin.