What is the essence of a mania? If you are an investor, you need to know how to spot the difference between something that has real potential and something that is simply a mania. Paul Mampilly says that a mania is something that has nothing substantial to it. There is no real future for it. The only thing that would drive up the prices during a mania would be the news frenzy. This can be said about Bitcoin and other cryptocurrencies. The reality is that there is nothing real behind them. They are not real currencies. They are just internet stuff. There is nothing concrete about all those cryptocurrencies. There is no gold. There is nothing that would make the price of these currencies as high as they are if not for the news frenzy. The same could have been said about the dotcom mania. Many of the new tech startups had nothing behind them. They had no funds and no profits. Instead, all they had were a website and the news frenzy about the dot com industry. That is why it all crashed. Paul Mampilly says that the same thing will happen to Bitcoin. Follow Paul on Twitter.
Paul Mampilly wrote an entire article in Investor Daily about this. His articles in Investor Daily, which is put out by Banyan Hill Publishing, come out every Thursday. You should definitely sign up and join his over one hundred thousand other subscribers to learn from him.
Is there any way to profit after the Bitcoin bust? Paul Mampilly says that you can. Just like if you would have invested in Amazon after the dotcom crash, you need to find something substantial to invest in after the Bitcoin crash. For example, the cryptocurrency industry came up with a new way to raise funds for new projects. This means that new stock offerings may be cheaper in the future. Using the power of the internet, you can raise funds for a new project much faster. Paul Mampilly also says that in the future, some of these cryptocurrencies, while not replacing regular currencies, will be collectibles like gold and silver. People like to accumulate and collect gold and silver for protection, and some cryptocurrencies may become in demand for that same reason. This is because younger people are more open to intangible assets than older people generally are. Check: https://banyanhill.com/expert/paul-mampilly/