Paul Mampilly is an experienced investor and strives to offer exclusive advice to the average investor. So when he says that Bitcoin is about to pop, then it may be time to take another look at the crypto market. He believes that both Ethereum and Bitcoin are two large cryptocurrencies which are currently in a massive bubble and that it’s only a matter of time before it all comes crashing down.
Bubbles Aren’t As Rare As You Think
Mampilly isn’t new to bubbles. He’s been through several, including the dot-com bubble of 2000. He knows what a bubble looks like, and he’s noticed some startling parallels. In 1999, the stock price of Qualcomm Inc. increased by more than 2,500 percent, with a dozen other stocks increasing by well over 1,000 percent. At the time, this seemed almost too good to be true. Normal people were becoming millionaires in a matter of months.
But it wasn’t meant to last, and most of those who had jumped in on these otherworldly gains soon saw their investments crashing into the ground. Whereas investors such as Mampilly had long since sold their stocks, walking away with a hefty profit, although, not as much as they could have if they’d taken more risk. However, it ended well for Mampilly, as, while there were still gains after he dropped out of the bubble, it soon came crashing down, and most other investors came crashing down with it.
Why Bitcoin Is A Bubble
During the dot-com bubble, there wasn’t anything substantial backing the increase in stock prices, the only reason they rose was that people believed that they would keep rising. The same is true for bitcoin and other cryptocurrencies. Bitcoin is only gaining value because people believe it will. When a bubble happens, the people who want to invest in that bubble will do exactly that, until everyone who thinks of it as a sound investment has already invested in it. Then, when everyone’s at the top, they begin to cash in on their investment. It quickly becomes a massive selloff, resulting in dramatic price drops, and anyone who hadn’t already sold their investment sees it dwindle into nothing.
Paul Mampilly worked in the financial industry for many years, quickly rising through the ranks of multiple companies, including ING and Deutsche Bank. After his retirement, he went on to use his investment expertise to benefit the average investor, primarily by writing for the newsletters Extreme Fortunes and Profits Unlimited.
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