Bitcoin Price Will ‘Explode’ But Adoption ‘Won’t Happen’: Allianz Chief Economist

Bitcoin’s price will “explode” but mass adoption is “not going to happen,” Allianz’s chief economic advisor has said.

Speaking on US media network CNBC’s Squawk segment, Mohamed El-Erian told a panel that Bitcoin should be worth half or one third of its then $4000 price.

“The current pricing assume massive adoption, and I don't think governments will allow the amount of adoption that's currently priced in,” he explained.

“I think the price will explode, but I think it will exist because it’s a peer-to-peer currency.”

El-Erian joins an increasingly high profile debate on Bitcoin’s future, after China spooked markets with unsubstantiated claims it will ban exchanges, and JPMorgan CEO Jamie Dimon called it a “fraud.”

Dimon also suggested Bitcoin’s only “limited” use case would be as a p2p currency, specifically for Venezuelan citizens, North Korea and drug dealers.

“It exists in that world,” El-Erian continued about Bitcoin’s use as such a currency. “But current prices assume massive adoption, which is not going to happen."

The increasing divergence in perspective between traditional finance figures and pro-cryptocurrency voices such as John McAfee, Max Keiser and investor Jeremy Liew, all of whom have given sky-high Bitcoin price predictions for the near term, is palpable.

As of press time, Bitcoin had meanwhile lost 5.3 percent in 24 hours to circle $3700. On Wednesday, analyst Tone Vays suggested the “perfect buy floor” would be $3000, where strong support meant he “didn’t think it will go any lower.”