Well, Bitcoin fell nearly 7% to the lowest intraday level since August 22 on the heels of Jamie Dimon’s hilariously blunt assessment of the outlook for the “currency”, which he says will ultimately be shut down by governments.
Needless to say, that brought out the crazies – a cacophony of verbal tomato throwing from the crypto peanut gallery ensued.
Well, this morning it was Mohamed El-Erian’s turn and his message was similar, although not as Dimon-ish as Jamie’s.
“It’s certainly a disruptive technology, but it won’t see widespread use,” El-Erian told CNBC early Wednesday.
“The current pricing assumes massive adoption, and I don’t think governments will allow the amount of adoption that’s currently priced in” he continued, adding that in his estimation, Bitcoin needs to fall by at least 50%: “I would say at least half of what it is, a third of what it is.”
“Current prices assume massive adoption, which is not going to happen,” he concludes, rubbing it in.
So cue the cat calls about how El-Erian “just doesn’t understand” the technology he’s talking about and how there’s no way governments can stop the proliferation of cryptos.
But to all the folks out there for whom getting rich on a fad isn’t enough, just remember this about your “revolution”: when it goes to zero you’re going to have to own it then too. At least you’ll have the “evil” government to blame, which means that at the very least, your overarching view of the world will be validated.
Here’s the clip: