In times of financial success, most people never consider an adverse occurrence. Although most people diversify their risks in anticipation for such happenings, some ramifications are unimaginable and can catch you off-guard. Borrowing from our historical experiences, the popular internet money, cryptocurrency might be up for some hard times soon. In “Paul Mampilly’s Advice on Bitcoin and the Cryptocurrency Bubble,” he explains how the cryptocurrency bubble is near its end. According to him, predicting exactly when the crash is going to happen is not possible, but on a statistical basis, it is bound to happen. He goes further to explain how the 1999 financial bubble exploded and most people who had invested heavily in certain companies found themselves penniless. Watch videos on Paul’s Youtube channel.
In the article, Paul Mampilly states that according to historical events and the 1999 bubble, those companies that were affected were large corporations. These had engaged in business for numerous years and possessed an extensive portfolio of investments spread across different financial sectors. The value of their stocks increased exponentially over a short period which was a real sign of the eventual crash. New investors didn’t even know what was about to hit them. According to Paul Mampilly, this is the same scenario that investors of cryptocurrency are going to undergo. A similar event to the 1999 financial bubble.
Cryptocurrency values are currently off the roof with one Bitcoin going at $19,000. If you are not conversant with these terms, then it would be valuable first to learn the definitions. A cryptocurrency is a digital currency that is only available online and doesn’t possess any regulatory body governing its usage and supply. The most popular cryptocurrency is Bitcoin that has a mysterious figure behind its development and actual utilization by the public. Other popular digital currencies followed suit and increased the value of digital currencies even further. Paul Mampilly warns that based on the plunge that Bitcoin took in 2018, other negative impacts that are going to destabilize the coin are yet to be felt.
The frequent occurrence of an economic bubble is fundamentally based on the excessive valuation of a particular asset way beyond its actual functional value. The fate is set when based on such excessive valuation, individuals start to invest in the asset which might not have a future. Mampilly states that one of the earliest signs of is a high public interest which creates more instability. Investors become emotionally connected to their investments and avoid selling their stakes. After the majority of individuals become part of the bubble, it unexpectedly bursts, leaving significant investors with nothing. Read: https://www.stockgumshoe.com/reviews/profits-unlimited/greatest-medical-breakthrough-in-history-and-mampillys-1-stock-for-2018/