Paul Mampilly has a newsletter that is called Profits Unlimited. It is put out by Banyan Hill Publishing, and it is highly regarded as one of the best information sources for investing and finance news and advice. Visit the website paulmampillyguru.com to learn more.
In one of his newsletters, Paul Mampilly compared the Bitcoin mania to the dotcom bubble in the in 1990s. There are many comparisons that can be made about the two incidents. During the dotcom bubble, many new tech and internet companies were starting up. The problem was that many of these companies did not do anything. All they had were a website and some half hatched plan. They did not have any track records, and they were not making profits. However, the internet was all the rage because it was so new and had great potential. People were investing in these new companies that did not have anything substantial to back them up. The prices of their stocks were soaring very high. Read more articles by Paul Mampilly at Banyan Hil
Paul Mampilly said that during the course of research for his article, he discovered that twelve stocks went up by more than one thousand percent during the dotcom bubble in 1999. Another seven stocks went up by nine hundred percent or more. Some of these companies became very big and made it to the NASDAQ index. However, says Paul Mampilly, there was nothing underpinning the entire dotcom boost. Paul Mampilly himself sold his stocks at the end of the year of 1999, as he wrote in his article. He said that he was feeling pretty foolish, as he saw that the stocks were going up and up even after he sold his shares in the companies. However, a year or two later, he was very happy that he did what he did. The stocks eventually crashed, and Paul Mampilly did not lose any of the money that he invested in the dotcom stocks. Not only that, but he made a nice profit. However, his friend lost all of her money. She made over six figures by investing in the dotcom industry, but she lost all of it, which is terrible. Paul Mampilly believes that the same thing can happen in the cryptocurrency industry. A big crash can wipe out the profits of all those who made money during the bubble. There is nothing underpinning the big boost in Bitcoin prices, just like before. Visit: https://www.linkedin.com/in/paulmampilly