As the world around him continues to cash in on the bitcoin craze, Paul Mampilly is quite pessimistic about this new money making bubble in the finance world and advises traders to steer away from it. Paul Mampilly who is a household name in America’s financial arena and a former hedge fund manager is positive that the bitcoin bubble is about to burst and those who have already invested millions with hopes of pocketing mega profits are living a mere pipedream. Although Mr. Paul cannot really point out when the bubble will burst, he is certain that it will surely happen no matter how long it takes.
Why is he confident about his opinion?
Paul Mampilly takes us back to 1999 where every businessman and investor was optimistic about the stock market rally. Even his close friend by the name Tess had invested in technology shares worth more than 1000 percent. The market was doing pretty well and kept attracting prominent companies such as Qualcomm, Nasdaq composite index and drew businessmen from all divides.
Even though Paul sold his shares before the imminent crash, neither him, his friend nor the investors knew it would happen. At some point, he felt that he had made a mistake by selling his stocks. However, between 2000 and 2001, he was relieved at his decision after the market stumbled to unbelievable lows causing losses all over. Prior to that Mampilly had tried warning his friend and urging her to sell her stocks when they began to plummet but she would not listen causing her a tremendous loss as she ended up with zero balance. Read more about Paul Mampilly at Talk Markets.
Similar to that, Paul Mampilly believes that the bitcoin bubble is headed in the same direction. Even though bitcoin is currently at highs of more than $19000 and other cryptocurrencies are also doing pretty well, he is positive that the bubble will burst sometime in future. Why?
Well according to Mampilly, bitcoin and crypto’s are adopting the same pattern that the 1999’s market stock took. For instance, bitcoin was designed in 2008 and its popularity skyrocketed caused a frenzy in the world of forex trading after it was adopted by high profile individuals in the tech and investment arena. This triggered the emergence of other cryptocurrencies such as litecoin and Ethereum which are also doing quite well. However, bitcoin recently took a plunge and fell to lows of $8000. Even though it stabilized, it did not return to its initial position which is why Paul Mampilly is pessimistic that there will be a forthcoming crash. Follow Paul Mampilly on Stocktwits.com.
Even though most investors criticize him for being cynical towards bitcoin claiming that he’s only negative because he has no cryptocurrencies in his possession, Paul refutes the claim by saying that he only chooses his investments carefully. Paul Mampilly takes time to research and understand the patterns so he can predict what the future holds for the tech and investment arena.