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Paul Mampilly says bitcoin is a bubble

Paul Mampilly says bitcoin is a bubble published on

The term economic bubble may be new to many investors of the current generation but those who have been in the financial industry for a long time know very well what it is. It is a phenomenon where the prices of a stock commodity go up for no reason. A genuine stock investment should be supported by tangible economic factors. It is not advisable to invest in a market that keeps on increasing but there no reason to support such moves. It is a risky market that should be avoided at all costs. Such bubbles explode and leave investors economically wounded.

In a generation where people are happy about getting rich quick schemes, there is another bubble that is happening. This bubble is in the form of cryptocurrencies. Almost everyone even those who are not keen on the financial industry know of bitcoin. Bitcoin is a cryptocurrency which has the highest value currently. It is trading at an equivalent of over $10,000. So, what has led to the increase in the price of this cryptocurrency? This s something many people in the industry are not asking themselves before placing their investments.

Bitcoin and other cryptocurrencies according to investment Guru Paul Mampilly are presenting the perfect case of an economic bubble. Prices keep on going up but there is no reason they are doing so. There is no single economic factor that has pushed the prices up. The only reason there is an increase is just that it is a new phenomenon of digital money that cannot be tracked. Paul Mampilly warns investors to be keen on their investments in the cryptocurrencies.

Paul Mampilly believes the bubble will soon burst and everyone who will not be aware will suffer the consequence of losing their money. He gives an example of a stock that had a similar growth to that of the cryptocurrencies. He explains that the technology stocks bubble was witnessed at the end of the last century. The bubble composed of big firms in the technology sector such as Qualcomm Inc. and others. The stocks had skyrocketed and had recorded an increase of over 1000% in a very short time.

Paul took part in the stocks but realized early enough that bubble was about to explode and sold all his shares. By the time it happened, he was safe with his profits and did not lose anything. Many investors who stayed in the industry long after lost their investments.

About Paul Mamplilly

He is an experienced investor who understands the future of the financial industry. He is the winner of the Templeton Foundation as well as the editor of the subscription newsletter, Profits Unlimited”

Learn More: www.youtube.com/watch?v=rEOrH47cGNw