Paul Mampilly Warned Us About the Bitcoin Crash

Paul Mampilly remembers the dotcom mania very well. He had a friend who invested a lot of money in the companies that were involved in the dotcom mania. One day, she went up to him and told him that she was rich. She said that she had invested in companies that had stocks that were going up in price.

Prices of stocks were going up by twenty percent, thirty percent, or even fifty percent every single day. A lot of people became very greedy and let their emotions of greed and their fear of missing out drive them to invest a lot of money into the market. The problem is that the stocks eventually went down in price. Whenever there is a period of unsustainable growth, the markets are bound to crash. We are talking about companies that were listed on the Nasdaq index. These companies were well established.

Paul Mampilly saw what was going to happen and made sure to sell his stocks as soon as he made a nice profit. He watched as the prices continued to go up, and wondered whether he should have held on to his stocks a little longer. However, he soon saw how the prices were going down again. At that point, he knew that he had made the right decision by not letting his emotions of greed guide him. His friend, on the other hand, lost all of her money and was soon left with nothing. She did not sell her stocks, even when the prices were going down because she was greedy and hoped that they would go up again.

Paul Mampilly made the same warnings when he saw the Bitcoin bubble. Bitcoin was up to the price of almost twenty thousand dollars. Paul Mampilly knew that such growth was not sustainable. He knew that a crash was going to take place soon enough. That is exactly what happened. At the time, he warned people not to invest in Bitcoin. He warned those who had invested to sell Bitcoin. Those who listened to him did not end up like his old friend who lost her money during the dotcom bubble.

Paul Mampilly is the winner of the prestigious Templeton Foundation Award for the best ROI on investments. He has years of experience on Wall Street. He is now retired and writes for Banyan Hill Publishing.

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