The popularity of cryptocurrency, particularly bitcoin, has raised concerns that we could be experiencing a financial bubble. A financial expert from Banyan Hill Publishing Company, Paul Mampilly, has recently released a statement regarding his belief about the current market for cryptocurrencies. Paul Mampilly has been a successful investor and has made a living by investing for himself and giving others advice on how to do the same. Over the course of his career, he has managed to make several successful trades that have gained him media notoriety as a financial guru.
Paul Mampilly has compared the recent explosion in the value of cryptocurrency to the stock market in 1999. At that time he knew several investors who owned stock in technology companies that had experienced an increase in value of up to 1000%. That very same year some of the largest stocks dropped in value significantly. Read more at PRNewswire about Paul Mampilly.
Over the course of the last year, almost anybody who put money into a major cryptocurrency has experienced incredible gains within an incredibly short period of time. Paul Mampilly believes that in the near future these popular cryptocurrency’s will experience a significant crash in value.
Cryptocurrencies are a form of digital cash that allows individuals to conduct transactions almost completely anonymously. There are obviously some benefits to the use of a technology such as this, but that does not necessarily merit their incredible increase in value over the last year. Countries around the world have been scrambling to decide how exactly they should regulate this new industry.
In January of this year, Bitcoin reached an all-time high of nearly $20,000. It has since fallen to below $8000. Paul Mampilly believes that this is not yet the worst and that there will be a further decrease in value in the near future. He believes that the current market for cryptocurrencies shows nearly all the hallmarks of any financial bubble that has ever passed. Read this article at Forexvestor.com.
He, however, does not believe that there is no benefits to cryptocurrencies. He believes that the use of cryptocurrencies could help to eliminate some of the incredibly high fees that are charged by companies that sell stock to investors. He believes that they will come to occupy a similar position to those of precious metals and materials such as gold and silver. Overall, Paul believes that there is some exciting new technology being implemented in cryptocurrencies, but this does not merit their explosive growth and value.