Mr. Paul Mampilly is a renowned American investor and financial advisor. In his usual unique way, he shares his thoughts on cryptocurrency. Mampilly firmly believes that the cryptocurrency bubble will burst shortly. The previous winner of the prestigious Templeton Foundation investment competition relates the current state of cryptocurrency to the 1999 stock market rally that would leave investors without any investments. And to reinforce his point, he states that it is only a matter of time before cryptocurrency investors lose their money. Follow Paul on Facebook.
The 1999 bubble was composed of some companies with a solid reputation. Stocks that were not representations of real companies rose so high a clear indication that things were not okay. The massive stock bubble kept drawing in new investors who were unaware of the situation. Paul Mampilly sold his investments and two a year later he lived to cherish his decision. The current cryptocurrency state is not any different.
“Moats are lame,” said Tesla CEO and billionaire Elon Musk, referring to Berkshire Hathaway CEO Warren Buffett’s central investing philosophy.https://t.co/feSl3Scr8Y#Tesla #CEO #Musk #ElonMusk #WarrenBuffett #Twitter #Moats #Economy #Trading #Investing #Stocks #StockMarket pic.twitter.com/nE1vZ9MXQG
— Paul Mampilly (@MampillyGuru) May 10, 2018
A cryptocurrency is a form of payment means that exists solely online, beyond the control of any single centralized government. This form of currency is controlled by the use of very sophisticated rules and cryptographic patterns with Bitcoin at the head and by far the most prosperous. Other types have since emerged as the interest in Bitcoin grew. Several important organizations and people of high standard took it leading to its popularity in no time. Several governments have officiated the technology, and many more are following in the direction. Paul points out the rapid growth history of cryptocurrency and terms it as high interest in assets of unknown value that would eventually lead to a sudden loss.
Bitcoin established an impressive growth rate to a peak of $19,000 with many critics and idolizers alike. Some people characterized it as the tech of the future while those with a solid understanding of currency claimed the opposing opinion. Later Bitcoin took a plunge before temporary stabilization at $8,000. The financial expert, however, warns that the worst is yet to come.
Economic Bubbles occur when assets begin to sell at prices that outweigh actual functional value. This situation happens when investors invest heavily in assets that are deemed to be successful. Contrary to belief, investor Paul Mampilly’s sentiments are not as a result of failure to invest in cryptocurrency but rather due to the near-impossible evaluation associated with cryptocurrency. He firmly believes, however, that the very nature of the idea is impressive but investments at this time are highly risky. Follow Paul on twitter.com.