XRP may grow by 300% and the collapse of Bitcoin could disrupt the global monetary system
Experts at Allianz think that the collapse of bitcoin could disrupt the global monetary system
Mohamed El-Erian, chief economic adviser at Allianz, thinks that it is too early to talk about the possible collapse of bitcoin ecosystem. The cryptocoin is «not too big to fail». However, if we admit the probability of the BTC collapse, «it could disrupt the global monetary system».
«From a narrow perspective, it’s not too big to fail; from a broader perspective, that would be another challenge to the liquidity paradigm, where investors simply bet on liquidity. This is an asset that wants to establish itself, but it can only establish itself if governments allow it to», he said in an interview at CNN. — «We’ve already had three near-accidents, so you’ve got to be careful, you never know which little fender bender is going to cause a pile up on the highway».
The analyst is sure that the main cryptocurrency will keep becoming more popular among institutional investors. However, El-Erian doubts that authorities will remain calm about it.
«Be cautious, because not only are you assuming on private sector adoption, but you’re also assuming on government tolerance, and that second one, I’m not so sure about», the adviser added.
An analyst assumed the possibility the growth of Ripple by 300%
The price of the XRP token surpassed the point of $1 for the first time in recent years. According to the head of the data analysis department at CEX.IO Broker Yuri Mazur, the growth of the token is a consequence of its serious underestimation due to conflict between Ripple and SEC.
«Right now, when bitcoin and many altcoins showed a considerable growth, investors are trying to make up leeway. The major risk is a confrontation between the executives of Ripple and SEC, but the prospects are not clear. So far the chances to win seem equal for both Ripple and the American regulatory», Mazur expressed his opinion.
The expert thinks that XRP may grow by another 300%. The precondition for this may be the fact that investors who invested in the token at its peak at the beginning of 2018 are now trying to «pull the prices up» to minimize the possible loss while dropping the asset.