A certified financial planner and author has said Bitcoin, XRP and a host of other cryptocurrencies are not investment, foretelling that they are going to crash in the nearest future.
Despite the recent BTC price upsurge, Peter Mallouk, financial expert and president of Creative Planning, a wealth management company, said the collapse of Bitcoin and some other digital assets is near.
Peter said blockchain is worth investing into, but Bitcoin, Ripple and others are not. Although, conversing with CNBC Make It, the wealth manager affirmed that one or two out of all these cryptocurrencies will work out.
He advised that those interested in blockchain, the underlining technology behind cryptocurrency, should not invest in cryptos, but in the technology behind it.
CIting examples, the financial advisor said companies like IBM and Accenture are heavy investors in blockchain. Peter pointed that firms like Walmart are using Blockchain to design better ways to run their inventory, saying “that’s the way to play blockchain technology — not by trying to buy cryptocurrency.”
The wealth manger and author of “The 5 Mistakes Every Investor Makes and How to Avoid Them,” opined that blockchain technology has come to stay and that is why companies like IBM and Accenture are investing in it.
However, “that doesn’t mean that bitcoin is going to work out or ripple is going to work out,” he says.
“The TV worked out, but everything that comes out of it, we don’t want to watch. Palm and Blackberry were fantastic, but Apple came in and took them out. Lycos and Excite were here before Google.”
Moving forward, Peter observed that not even a fraction of cryptocurrency can survive the test of time. He said those who buy cryptocurrency, “get no income”. “It’s not a real investment. It’s speculation.”
Peter suggest that people invest in real estates, stocks and bonds, saying they should not invest in something that’s not going to pay them.