Paul Mampilly Compares The Current Cryptocurrency Craze With The Year 2000 Financial Bubble

Stop pumping more investments into the cryptocurrency markets and if possible, cash out your gains as soon as possible. That was Paul Mampilly, a renowned investor and financial guru’s message to individuals investing in cryptocurrency. While he still hasn’t pointed to the exact time he expects the cryptocurrency markets to come tumbling, the Templeton Foundation investment competition winner adds that it is only a matter of time before this new technology market crashes. Follow Paul on twitter.com.

Drawing experience from the year 2000 market crash

Paul Mampilly compares the current demand for crypto coins with the second-millennium bubble burst for technology company stocks. The former hedge fund manager mentions that every investor at the time believed that wealth in the stock markets could only come through investments in technology company stocks. The greed for these stocks then saw the value of some of these stocks swell past 1000 percent. To him, such insane value increase in a short time even for companies without a solid base was in itself a red flag that prompted him to sell his shares.

In many ways, Paul likens the current greed for alternative coins with the 1999 market bubble. He notes that while the two bubbles stem from almost different industries, they have similar characteristics. For instance, just like the technology bubble culminated a notion that these companies could the future of the world economy, cryptocurrency promoters have continually hyped the need for crypto coins terming them the future of online transactions. Similarly, most of the crypto coins currently available have also shot in value by over 10,000 percent.

Why is it doomed to crash?

It can be quite difficult to tell of a market bubble but Paul Mampilly believes that the warning signs for the impending cryptocurrency crash are already up. With the most apparent being the constantly soaring popularity of the different coins that has effectively sent most investors into frenzy thereby driving the price for these coins to crazy highs. Their popularity will possibly continue growing in the near future.

But a time will come when the market can’t sustain any more investment pressure and the prices start coming down. Such an action would then throw most investors into a panic mode resulting in massive sales and would signal the beginning of the market crash. Paul Mampilly believes that just as the cryptocurrency investors are quick to buy when they think the prices favor them, most are also quite impatient and will be quick to sell when the market turns against them.

About Paul

Mampilly boasts of an investment experience of more than three decades, most of which was spent at the helm of Kinetics hedge fund. He is also the founder of Extreme Fortunes and senior editor at Profits Unlimited, two online journals offering investment advice to traders internationally.


To learn more about Paul Mampilly, visit: https://paulmampillyguru.com/

 

Shervin Pishevar warns internationalization of entrepreneurship is inevitable

Few people in the United States today have the same level of insight into the tech world and tech businesses than Shervin Pishevar. As the founder and CEO of Sherpa Capital, one of the most important venture capital firms in Silicon Valley, Shervin Pishevar has proven that he has the golden touch when it comes to finding and funding the next big names in tech.

But as one of the most astute observers in the tech world, Shervin Pishevar has also come to a number of ominous conclusions about the structural difficulties currently facing the United States. In a recent tweet storm, the famous entrepreneur addressed a large number of pressing issues that are confronting the country. One of those issues is the unavoidable development of nomad entrepreneurs and the consequences that will face the United States if it handles their advent the wrong way.

Shervin Pishevar says that the world is becoming an increasingly globalized place for those who have the means to take advantage of the ways in which countries can directly compete with one another. For example, Pishevar points out that tax rates between various jurisdictions can radically differ as can the rules for such things as incorporating businesses and whether or not someone is taxed on earning that they make outside the country. In particular, Pishevar says that the United States has some of the worst rules in this regard, a leftover relic from a time when American society enjoyed far higher levels of general trust and feelings of civic duty than are prevalent today.

The consequence, he argues, is that the talented capitalist class is acutely aware of what a terrible deal they are often receiving for running businesses in the United States and maintaining citizenship in the country. Pishevar says that, when millions of dollars per year in personal and business taxes are at stake, today’s globally inclined entrepreneurs won’t hesitate to relocate to jurisdictions in which they are treated better. Because Pishevar says that he personally knows many entrepreneurs who are offshoring, this effectively means that the United States is already extremely uncompetitive. The country risks serious gross tax revenue declines if it keeps running off its most productive citizens.

https://genius.com/Shervin-pishevar-platform-lyrics

Shervin Pishevar says volatility indexes are MBS and CDS-style scams

The 2008 financial crisis was one of the worst in the history of the United States. The reasons behind it are numerous, and there is still vigorous debate about the role that various policies, financial vehicles, institutions and people played in bringing about the worst financial catastrophe since the Great Depression.

However, everyone who has studied the 2008 debacle almost universally agrees that certain financial instruments and the extremely loose regulations surrounding them were chief culprits. So-called mortgage-backed securities and credit default swaps were key components in the economic bomb that ultimately exploded, nearly bringing down the entire financial edifice of the United States with it.

Shervin Pishevar, one of the most successful entrepreneurs in Silicon Valley, recently unleashed a flurry of tweets on his account, which is followed by nearly 100,000 people. One of the more provocative ideas that Shervin Pishevar put forth was that some of the same dynamics that led to the 2008 crash are now being repeated, and for much the same reasons. Shervin Pishevar believes that volatility indexes and the funds that are centered around them are essentially scams, fueled by the same base motivations that led to the rise of collateralized debt obligations and credit default swaps.

Pishevar says that the real reason behind the huge popularity of volatility indexes, prior to their momentous crash last February, was the simple fact that many fund managers want to create volatility because that is what they are incentivized to do. Pishevar points out that the way that many fund managers are compensated is equivalent to a classical principal-agent scam. The manager wants to create as much volatility as possible because he is able to participate in the upside without personally assuming any of the downside risk. That means that the more frequently the fund registers huge wins, the more the manager will actually be paid over the long term.

Shervin Pishevar strongly warns that all investors should read and understand a fund’s prospectus before investing. In particular, they need to carefully read and, if need be, go over with a professional the compensation structure of the fund, making sure that the management is not incentivized to run very costly scams with the investors’ money.

https://www.worldaffairs.org/event-calendar/speaker-directory/shervin-pishevar

Ted Bauman, impacting the world of economics through knowledge

Ted Bauman, a resident of Atlanta GA in an editorial director at Bayan Hill publication. He specializes in privacy, asset protection, low risk investment strategies and international migration issues. He has worked as a fund manager in several non-profit organizations that funded housing projects of people earning low incomes. He has always had an interest in helping people to use their resources to achieve financial independence. Today, he gets to do this every day as a contributor to Bayan Hill.

They say experience is the best teacher. But it only teaches those willing to learn from it. Ted Bauman’s success in the world of finance has been dependant on his quick-learning ability. True, his degree from Cape Town University in economics and history gave him the academic training necessary to thrive in his field, but his ability to learn from every position he has been in has seen him acquire invaluable experience.

Even in his youth working minimum wedge jobs at Burger King and MacDonald’s, he picked lessons that helped him in managerial positions. Working in these low income jobs he came to understand that for any organization to stand, it has to equally care about the employee at the lowest level as much as it takes care of the employee at the top most level. This wisdom he applied in every managerial position he held. Visit Stock Twits for more info.

Ted Bauman says his most fulfilling job has been contributing to Bayan Hill Publication. Writing stories for Bayan Hill gives him a chance to educate the masses on issues that matter. However, his challenge has been being able to make matters of finance and economics appealing to readers while at the same time provoking them to think critically. To meet this challenge, he relies on his skills as a writer to make his stories easy to understand and appealing to the reader. He also keeps up with the trends and is constantly on the lookout for any shifts in the market. This makes him an apt analyst and a valuable contributor of the publication.

As the editorial director at Bayan Hill Publishing, Ted says that his greatest achievement is seeing the publication influence people’s thinking about their economy as a country and globally. He says that the stories they publish in the publication have seen readers start to question economic trends. This means that pretty soon there will be no need for another entity to decide on the trend to go with. This kind of critical thinking not only affords people options but also inspires innovation. It is therefore safe to say that Mr Bauman is playing an integral part in changing the world’s economy for the better.

Read:https://www.bloomberg.com/research/stocks/private/person.asp?personId=264684898&privcapId=109183793&previousCapId=109183793&previousTitle=The%20Sovereign%20Society

 

Bitcoin Value Constantly Increasing in the Exchange Market

After a single Bitcoin crossed the $5,000 some months ago, Bitcoin has again cost more than $10,000 in some exchange markets. The price of the Bitcoin has increased due to the increasing numbers of new buyers that have shown interest in the currency form all over the world. The new buyers think of Bitcoin as a competitor of gold that will be effective for storing money away from government and company regulations.

Bitcoin was launched in 2009 by Satoshi Nakamoto and was able to survive hardships in its first seven years. Bitcoin trading started taking place in some parts of Japan and South Korea among investors. Investors in Seoul have gone ahead and developed stores where individuals can buy and sell the currency. The prices of Bitcoin reached $10,000 in South Korean exchange markets. It was valued at $9,700 in the American exchanges.

The American stock exchange market transactions of Bitcoin reached $5 billion last Sunday. Experts in the Bitcoin technology believe that the new currency will soon join bonds, physical commodities, and stocks as an asset that people will invest on. At least 100 hedge funds have seen opportunity in the currency and have invested in it. The hedge funds have also invested in other virtual currencies.

The price of Bitcoin is currently seven times the price it sold at in 2013. Bitcoin companies have increased across the world unlike in 2013 when only one company, Mt. Gox owned them. In 2013 Mt. Gox was in charge of more than 75% of all the Bitcoins that were available. Currently, the companies hosting Bitcoins have only 10 of the currency each. The industry is therefore safe from problems caused by monopolies.

The currency has reached many investors in several countries across the world. The currency’s design is the same in all countries. Their storage and trading are carried out on a network of computers that is not centralized. The trade is also not regulated by any company or government. Its prices are expected to rise in the next few months.