As the world around him continues to go into an excited cryptocurrency frenzy, Paul Mampilly maintains his stand that this popular bubble is going to burst. Even though he cannot really point out a specific date and say that this is when the impending crash will occur, Paul is certain that it will take place sooner or later.
Why Paul Mampilly remains optimistic about the world of crypto
The former hedge fund titan is certain that the imminent crypto crash will take place because cryptocurrencies such as bitcoin are following the same trend that the 1999 impressive market rally stocks displayed before taking a nosedive. Paul Cites that in 1999, the market stocks were doing incredibly well to the point that his close friend by the name Tess had invested in technology shares worth more than 1000 percent. She was cashing in big and even Paul Mampilly himself acknowledged that. However, no one knew what lied ahead and that is when the catastrophic crash took place causing big names like Qualcomm Inc. which owned shares if up to 2619 percent incurred major losses. Read this article at Daily Forex Report.
As you can see, just like crypto, these stocks represented even giant firms listed on Nasdaq Composite. These firms had also benefitted from them before the crash too because the stocks rose to tremendous heights as sufficient proof that they were in demand. Thanks to this, investors from all walks of life continued joining in hoping to bag mega-profits only to lose it all. Fortunately for him, his lucky stars were shimmering brightly because he happened to have sold all his shares before 1999. He had no idea that the crash would take place and when it did he tried to persuade his friend Tess to sell her shares but she kept them with hopes that they would gain demand and be popular again. Unfortunately for her, things went from bad to worse and lost them all.
According to Paul Mampilly, this is the same trend that cryptocurrencies are following with myriads of investors rushing in to invest because their peers are earning big. Just like the 1999 technology stocks, everyone who invested in Bitcoins went home a delighted person because they got massive profits. In fact, the value of bitcoins continue to skyrocket with each dawn and is now valued at $19000 dollars a factor that continues to lure more and more investors to join in.
Also, the crypto market continues to receive new entrants with each dawn such as the esteemed Ethereum and other litecoins. This is the exact trend which the 1999 stocks took before plummeting and as such Paul Mampilly advises investors against venturing into these green like pastures as they’ll dry up sooner or later leaving them with colossal holes in their bank accounts.
Nevertheless, his firm and cynical stand on the cryptocurrency bubble has not been received very well. Paul reveals that he has received countless emails from crypto investors stating that he is only bitter because he did not purchase bitcoin when he had the opportunity to do so. However, he says that is an absolute lie because like all veteran investors, he takes his time to do a thorough background check before he can invest in any opportunity. He looks at the value and considers various aspects and because the value of crypto can only be determined by the public, it is incredibly difficult to place a value on it and hence that is the first red flag which stops him from investing. However as no one can really tell what the future of the crypto world looks like, so let the mystery unfold. Learn more: https://dailyreckoning.com/author/pmampilly/