Legendary Economist Makes Striking Statements About Bitcoin (BTC) and Gold! "Still a Long Way to Go!"

While Bitcoin (BTC) is experiencing declines due to US-China tensions, gold is on the rise. Gold rose 3.2% last night in the spot market, hitting a new record high of $4,380 per ounce.

While gold continues to break record after record amid uncertainty surrounding the US government shutdown and China trade tensions, legendary economist Allianz chief economic advisor Mohammed El-Erian has made new statements about Bitcoin and gold.

Year-End Gold Forecast Announced!

Speaking to CNBC, Mohammed El-Erian talked about the similarities and potential risks of Bitcoin and gold.

The economist stated that although the world trusts American companies, it is concerned about the future of the dollar, and that this situation triggered the purchases and rise of gold.

Attributing the rise in the gold market to dollar concerns, El-Erian said:

“Investors are currently long on US assets and short on the dollar.

As a result, central banks are gradually shifting their dollar reserves into gold. At the same time, institutional investors are increasing the proportion of gold in their portfolios.

At this point, the two main factors that move gold prices are the increase in the weight of gold in the portfolios of central banks and institutional investors.

“And this gold accumulation will continue. At this point, it wouldn’t surprise me if gold hits $5,000 this year.”

Bitcoin Has a Long Way to Go to Reach Gold Level!

El-Erian defined the base of the investment pyramid as central banks, the middle as institutional investors, and the top as speculators, while stating that he sees Bitcoin as still in its development phase.

El-Erian stated that Bitcoin is still largely speculative and its underlying investment base is still weak.

Stating that a full balance has not yet been established in Bitcoin, the economist said that the speculative side is large, while the institutional and fundamental investor side is still small.

Describing Bitcoin as the younger cousin of gold, El-Erian said:

“Bitcoin resembles gold as a store of value, but its speculative elements still predominate. The institutional buyer base for BTC is limited, so volatility is high.

“However, over time, a strong ecosystem will emerge for BTC, and it will acquire gold-like properties. However, for now, Bitcoin needs time to reach the properties of gold.”

*This is not investment advice.