Allianz economist: Bitcoin will not disappear but the price should be cut in half

On September 13, Allianz chief economist Elian said in an interview with CNBC: "The price of Bitcoin should be reduced to about half or one-third of its current price, but it will not disappear."

In 2017, Bitcoin surged by nearly 300%, but after JPMorgan Chase CEO Jamie Dimon made negative remarks on Tuesday that "Bitcoin is a scam", the price of Bitcoin immediately fell to an intraday low of $4,106.23. On Wednesday, the price of Bitcoin fell below $4,000.

"Bitcoin transactions are a peer-to-peer way of circulating funds, and that's why they exist," El-Erian said. "There are a variety of other currency instruments used for peer-to-peer transactions, and Bitcoin is just one of them. But its current high price is based on the assumption that it will be widely adopted, which is not realistic. Governments will not allow Bitcoin to be widely adopted at its current price, and the price of Bitcoin should dive."