According to a recent publication on CNBC, Peter Mallouk, the financial planner and president of Creative Planning, a wealth management company believes that in the near future, cryptocurrencies are surely going to collapse and it is not advisable to buy bitcoin or other cryptocurrencies at the current stage.
Don’t buy bitcoin:
The president of Creative Planning and also the writer of the novel “The 5 Mistakes Every Investor Makes and How to Avoid Them” believes that not even a fraction of the current cryptocurrencies such as BTC, ETH, LTC, and XRP are going to survive in the near future. However, he also mentioned that 1 or 2 of the cryptocurrencies might be able to survive, however, if someone invests or buys cryptocurrencies, he shall not get any income and also it cannot be termed as an investment and rather is speculation.
According to Peter Mallouk, investors should invest in things that would give them some kind of payments in the future for owning them. Things like real estate, stocks and bonds are a better option for investments as the investors at least get some kind of income in terms of rents, dividends or yields in the future. He pointed out that cryptocurrencies such as bitcoin are not going to make any payments to the investors.
Mallouk also added that if someone is interested in blockchain technology (the technology behind the creation of bitcoin and other cryptocurrencies), one should think of investing in companies that adre investing or adoption the blockchain technology. Companies like IBM, Accenture and Wallmart that are using blockchain technology to improve their working.
Blockchain is real, not Bitcoin:
Peter Mallouk says that blockchain technology has a real future as large institutions such as IBM are heavly investing this technology and this surely does not mean that cryptocurrencies such as bitcoin and ripple that use this technology are going to have a future. He gave an examples of Television, Apple and Google saying that the television had a future but everyone does not watch everything that comes on it, Apple took over companies such as Blockberry & Palm and in the same way Google took over Excite and Lycos.