Paul Mampilly predicts about the future of cryptocurrencies

Currently, there is a new craze in town that is uncalled for competition on who invests first in the cryptocurrencies. The competition has been created by the huge gains which have been recorded by bitcoin. In just one year, bitcoin has grown by over 1000%. Many people who have been in fear of investing in the crypto have now realized that it is going up and are putting their investments in there hoping to become overnight millionaires.

Although the cryptocurrencies market seems to be gaining recently, according to former hedge fund manager in the Wall Street Paul Mampilly, there is a huge risk involved in this investment. Many investors are currently doing it blindly but this has potential to haunt them back in the future. Paul Mampilly says that the cryptocurrencies market is a bubble that is about to explode. According to him, bubbles do not last for long and very soon we will see the crypto bubble explode and the uninformed investors stand a chance to lose their capital.

Paul Mampilly does not give the exact time when the bubble explosion is likely to happen but says that it will most likely take a few years. Paul who has won the famous Templeton Foundation competition is asking investors to watchful and pay close attention to changes in the market. A bubble is characterized by an unreasonable increase in prices. For instance, no one can sufficiently explain why the price of bitcoin is going up. There is no economic or fundamental reason to support the increase. It has only been happening due to the pressure people have put on the market. Once the prices reach an optimum level with nothing to support it, it will come tumbling down.

Paul Mampilly gives an example of a stock that did the same thing as the cryptos are doing, in 1999. The stock prices rallied but there was no reason they were going up. The stock in the technology sector was up by over 1000%. Paul warned one of his friends who had shares in the stock about the possibility of it being a bubble that would crash. Just as he had predicted in 1999, the bubble burst and left many people in agony having lost all their investments.

About Paul Mampilly

Paul Mampilly is a prolific investor in the stock markets. He possesses long-term experience in the industry and therefore his advice about financial markets is authoritative and needs to be respected. He has predicted about the bitcoin bubble and this should not be ignored.

Paul Mampilly currently works as a senior editor at Banyan Publishing House. He is also the editor of his own newsletter known as “Profits Unlimited”

Paul Mampilly’s Social Media: twitter.com/Paul_M_Guru