2017 was marked by a huge increase in the number of people who were investing in the cryptocurrencies. Already, there are a number of coins which are at the heart of the recent trend. There is Bitcoin, Ethereum among others which are performing very well. Bitcoin is already priced at around $15000 currently. This increase has caused a lot of excitement in the financial industry as investors make millions overnight. People who invested in Bitcoin a year ago were buying it at about $1000. This shows a huge increase since then. The appetite for making millions overnight has attracted newbies in the industry who do not understand anything about them. People are just buying them just because they have heard that they are generating huge returns.
Many investors are looking for price dips and then buying further hoping that the market will keep going up. However, this is not the first time such a thing is happening. Investors who have been in the industry for a long time know that this phenomenon has happened before. One investment Guru Paul Mampilly understand the first such phenomenal. It happened in 1999. When the prices of technology stocks were going up insanely. There was an increase of even 2000% in some stocks. Many people made huge profits from the stocks and were very happy. They thought the stocks would continue moving higher. Unfortunately, what they did not realize is that the stocks were just a bubble that would soon burst and leave most of them in deep problems.
Paul Mampilly is one of the people who took note of the unrealistic nature of the stocks and sold his shares before the bubble burst. Many investors held on. However, when the stock started falling many people were trapped by the market. They kept buying hoping it would go higher and higher. This did not happen. The markets went lower and lower until many investors were left with zero balance. They failed to read the signs of time and realize that the market was no longer worth the investment.
Paul Mampilly predicts the same case for cryptos. Investors will continue buying but the stocks will get to a point where they will not go higher. They will come down while investors will still be buying more hoping the price would later shoot.
About Paul Mampilly
Paul Mampilly is a renowned investor in the stock markets. He has been trading in the financial sector for a long time. He has worked with big financial institutions and even has been a hedge fund manager.
He is the author of the newsletter known as the “Profits unlimited.”
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