Join Our Telegram channel to stay up to date on breaking news coverage
The recent Bitcoin price rally has been an eye-opener for many, with the leading cryptocurrency receiving attention from every corner of the finance industry. However, very few have spoken about their experiences with the asset. Mohammed El-Erian, a legendary economist, recently broke that mold.
Felt Like a Smart Man
El-Erian spoke at a session hosted by the Centre for the Study of Financial Innovation at the University of Cambridge, where he shared his personal investment experience with Bitcoin. In his interview, the Chief Economic Advisor at German financial services giant Allianz SE, explained that while he made a sizable gain on his Bitcoin holdings, he had cashed out too soon.
Last month, El-Erian revealed that he had purchased Bitcoin two years ago, when the asset traded at $4,728. According to the tweet, he said that his purchase wasn’t based on any technical analysis – instead, it was due to the asset’s offering and a need to get a “feel for what’s becoming a more popular holding.”
Before I get asked again about #Bitcoins
Back on Nov 29, '18, I bought some at $4,728,based not on a deep analysis but rather on the basis of technicals
Also was a great way to get a feel for what's becoming a more popular holding
I sold today,again not based on any deep analysis— Mohamed A. El-Erian (@elerianm) December 2, 2020
He eventually sold it all, making about four times his investment a Bitcoin hit $19,000 last month. Sadly, about a week after El-Erian sold off, Bitcoin went on a significant bull run that saw it double its previous all-time high and settle above $42,000.
As the economist told Financial News, he believed he was the “smartest person in the world” when he sold off his Bitcoin holdings. If only he had known better. Of course, the fact that his investment was more about observing the technical aspect of Bitcoin means that it wasn’t a total loss. Still, it’s hard to imagine that he would have made the same decision given the opportunity again.
Bitcoin, the Rebel
El-Erian’s experience goes to show that even top financial minds make mistakes when it comes to Bitcoin. No one could have believed that the asset would break through $30,00, much less get to $42,000. So, his decision wasn’t exactly foolhardy.
A similar experience can be drawn from earlier this month, when a Reddit user explained that he had found his wallet’s long lost private keys. The wallet held about $4 million in crypto at the time, and the user – named BitcoinHolderThankU – immediately cashed out of most of his fortunes. A few days after he sold, Bitcoin broke through $40K and then went on to $42,000 per coin.
“I went back and forth between different [over-the-counter principal desks] and ultimately ended up selling all 127 Bitcoins for a price of $33,439.02 per coin minus a 0.15% fee. The net was roughly $4.24 million,” he explained.
Join Our Telegram channel to stay up to date on breaking news coverage
