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Allianz Asset Manager's Chief Economist Mohamed El-Erian was able to make money on Bitcoin after the 2018 crypto winter but sold the coins too early.
According to the economist, he acquired a certain amount of bitcoins during the 2018 crypto winter, when the price of the coin dropped to almost $ 3,000.
“I felt compelled to buy it at this level, and I bought it. This was my entry point,” said El-Erian.
He held the position until the end of 2020 and sold the coins when Bitcoin returned to the $ 19,000 level. A few months later, the price of digital gold surpassed $ 60,000.
The economist admitted that he misunderstood when to sell an asset because of "behavioral mistakes."
He stated that he is ready to buy the first cryptocurrency again, but only when some of the speculators leave the market. In his opinion, in the long term, the first two groups of investors will become "a solid foundation for the market" because they are interested in technology.
The economist believes digital currencies are "very destructive" but are unlikely to ever replace the dollar.
Given the systemic importance of cryptos, the economist recommends that industry representatives take the issue of market regulation seriously so as not to repeat Big Tech's mistakes.
“The crypto community must take concerns about illegal payments, fraud and platform stability seriously,” he added.