Paul Mampilly and The Cryptocurrency Bubble
There is a bubble and that bubble is about to burst. That is the clear warning Paul Mampilly is giving to people. The bubble in question is Cryptocurrency. This comes as a surprise to many as the digital currency has been increasing in value every passing day. Currently, it is valued at 19,000 dollars from a mere 1000 dollars. However, Paul Mampilly says the cryptocurrency rise and rise of its shares is just a hallmark of another bubble burst to come. Paul compares the current situation to the one that took place in early 2000. Learn more about Paul on Inspirery.com.
In 1999 the stock market was soaring high and some stocks had risen to almost 2000% but at this point, Paul Mampilly predicted that this bubble was due to burst. He adviced his friend Tess at the time. Tess took the information from Mr. Mampilly as that of a pessimist who did not want her to enjoy the great fortune presented. She invested more money and saw as the prices increased. Paul, on the other hand, came off the bandwagon and sold his shares. At first, he regretted the decision but it was not until early 2000 he saw the predictions he had made were correct and accurate. Tess lost all her money so did the other newbies. Read more about Paul Mampilly at Ideamensch.
The same is happening in cryptocurrency. First, it is important to know the currencies Mampilly is talking about. Paul Mampilly explains that he means those that are a form of digital payments or currency that are not under the control of any authorities. According to this definition, this cryptocurrency includes Bitcoin started by Nakamoto and remains to be the most popular. This also includes Litecoin, Ethereum, ripple, and others with the same characteristics.
According to Mampilly, investors are getting on board of an investment that they can not really determine its true or functional value. This demand-driven increase in value is not sustainable because people are buying the currency, not because of its value but because it is increasing in value which makes it increase even further a makeup of a true bubble.
However, Mr. Paul Mampilly offers a little glimpse of hope and he can see the light at the end of the tunnel. That light can be seen in the technology behind the cryptocurrency. This technology looks very viable and in the long run, can change the way the financial market functions. In the short-run, the future for cryptocurrency might be deemed but in the long run, it is one that is worth investing in.