According to investing expert Paul Mampilly, many comparisons can be made between the late 1990s and now. The common factor is the existence of a bubble. Yes, Paul Mampilly is talking about Bitcoin. He thinks that Bitcoin is a bubble that is bound to burst.
Bitcoin is up an astonishing 1,172% in the last 12 months, hitting a high of more than $11,000.
— Paul Mampilly (@Paul_M_Guru) November 30, 2017
Paul Mampilly says that we all need to take a lesson from the stock market in the 1990s. This was also known as the dotcom bubble. It was called the dotcom mania because new companies were sprouting up in the internet and technology industries. Some stocks were up by more than a thousand percent, while others were up by over two thousand percent. A lot of people were going crazy trying to buy stocks, thinking that they would continue to go up. However, that is not what happened. Instead, although the prices of the stocks rose initially, they soon went down again. People who had invested a lot of money lost all of their money. There was nothing they could do about it at that point because the prices never rose again.
Paul Mampilly explains that such is the nature of a bubble. It is called a bubble because a bubble cannot continue getting big forever. At some point, it will burst. The same goes for stocks that continue to rise for no reason other than the frenzy that surrounds them. When it comes to those stocks, they will soon go down, because they cannot sustain such incredible growth rates for so long.
Paul Mampilly says that Bitcoin is going to go down as well. In fact, it has already gone down by around ten thousand dollars. The truth is that Paul Mampilly predicted this fall when the price of Bitcoin was at its peak. Paul knew what was going to happen, and he was proven right. In fact, nobody should be surprised if the price of Bitcoin continues to go down.
At the time, Paul warned that Bitcoin will crash and that nobody should invest in it. Those who disregarded his warnings and invested money lost it by around fifty percent.
Paul Mampilly is an author at Banyan Hill Publishing. He is the head of Capuchin Consulting and focuses on helping the average American with Wall Street investing. He has helped dozens of thousands of people make smart investments and become successful.
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