The first time that bitcoin and Cryptocurrency, in general, got mainstream attention was in the early 2010s when the first bull runs took place and some of the earliest investors became millionaires overnight. For a good while, many thoughts of crypto as a way to get rich quick and this led to an influx of many people into the market until more stability was achieved.
Since then, the market has gone through its largest bull run that saw the price of Bitcoin soar to $20,000 and two major bear runs that saw the price crash to around $6,800 and $4,000 respectively. The last few days has seen Bitcoin break above $5,000 for the first time since late 2018 and is still hovering just below that amount. If the crypto market has shown anything in the last decade, it is that it is resilient.
Despite this, not everyone is impressed in or has faith in the ability of crypto to survive and one of these people is Peter Mallouk, certified financial planner and president of wealth management firm Creative Planning.
In a series of recent comments, Mallouk not only expressed indifference at the recent price rally but also predicted the end of most cryptos.
“What we’re going to see, most likely, is, we’re going to see cryptocurrencies collapse,”
He pointed out that there are hundreds of cryptos and it is impossible for more than a fraction of them to last into the coming years. He also stated that Cryptocurrency shouldn’t be looked at as an investment.
“Is it possible that maybe one or two will work out in the future? Sure it is.”
But, he says,
“in the meantime,” if you buy cryptocurrency, you get no income. It’s not a real investment. It’s speculation.”
He says, that as a rule, he advises people to invest in things that are going to pay them and doesn’t consider crypto to be one of those things and tells people to instead look into
“things that are going to pay you to own them,”
“Own real estate, where you’re collecting rent. Own stocks, where you’re collecting dividends. Own bonds, where you’re collecting yield.”
While he had little praise for Cryptocurrency, he did speak well of the blockchain, the technology that creates Cryptocurrency, even as an investment tool.
“There are companies that are very heavily investing in blockchain and you can buy those companies — companies like IBM and Accenture,”
“companies like Walmart are using it to develop ways to run their inventory. That’s the way to play blockchain technology — not by trying to buy cryptocurrency.”