Think that buying bitcoin will make you rich? According to financial and investing expert Paul Mampilly, do not think that way so fast. The fact is that Bitcoin is likely to crash, according to Paul Mampilly.
— Paul Mampilly (@Paul_M_Guru) September 21, 2017
The Bitcoin mania is very similar to the dotcom Bubble, says Paul Mampilly. The truth is that some people became very rich by buying Bitcoin early on. Bitcoin jumped from the price of around one thousand dollars a Bitcoin to around nineteen thousand dollars for a Bitcoin. In other words, if someone invested ten thousand dollars, their Bitcoin went up in price to one hundred and ninety thousand dollars. If they invested more than one hundred thousand dollars, they made millions. However, all these big investors are likely to lose a lot of their money in the near future.
Paul Mampilly says that investors are saying that people like him who are warning of the crash are just jealous because they feel bad that they did not make money themselves when they missed the opportunity to invest in Bitcoin. However, they said the same thing when he warned them that the dotcom bubble is going to crash! They did not believe him then and they do not believe him now, but he feels that they will soon lose out because of it. In fact, his friend who had stocks that soared over one thousand percent during the dotcom bubble refused to speak with him because he warned her that she will lose money. In the end, she lost all her money while he sold his stocks early and made a profit.
Why don’t people act like he did and sell their stocks early? Paul Mampilly explains that it is because they are too attached emotionally to their profits. They are a little too greedy, and it blinds them. They saw their investments skyrocket, and they want to believe that their investments are only down temporarily and that they will go up again to even greater heights. The fact is, though, that it often does not work that way. Once the prices go down, they often do not come up again.
Paul Mampilly is an investor. He is often invited to give over his views on investing on major outlets such as CNBC and Bloomberg. He is the senior editor at Banyan Hill Publishing.
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