Peter Mallouk, a wealth manager by profession believes that Bitcoin market would eventually collapse but blockchain would remain as one of the key technology of the future. His comments came after the sudden market uproar in the last couple of days where the majority of the digital tokens made double-digit gains.
The recent surge in prices has made many optimistic about the impending bull run to start earlier which was being speculated to take charge towards the end of 2019.
Peter who is the head of the wealth management firm Creative Planning says that the crypto space is filled with hundreds of altcoins and every day a new token gets added to the list. Peter believes that with time the crypto market would collapse and a very small fraction of the current tokens would be left.
However, Peter agrees that a few of them would survive, which ones did not point out specifically, but we all know most of the people whether they are connected to the crypto space or not, owns any crypto token or not, believe that Bitcoin is ultimately going to be the future of money.
Jack Dorsey the Twitter CEO is big time Bitcoin bull who has said it multiple times that Bitcoin is going to become the money of the internet. Jack’s bullish is quite evidential from the fact that his startup square app, which is a payment portal only allows for Bitcoin payments and he does not own any altcoins.
Why Peter Thinks Crypto Market Would Eventually Collapse
Peter while explaining the reasons behind his thinking said that cryptocurrency is not a viable investment option, given there is no pay-out system unlike other traditional assets like bonds and stocks. Peter tries to explain the difference, he says suppose you buy a house, you can collect rent on it, but with Bitcoin or cryptocurrencies, you can only buy or sell it.
Peter says the biggest disadvantage of the crypto market is that it is being driven by speculations and thus it can never become a practical investment option in the long term.
Peter is Bullish About Blockchain
While Peter does not seem to be a big fan of the crypto markets, he has full faith in the underlying technology of Blockchain. He believes one should invest in the technology rather than crypto as it is going to stay and one does not have to deal with market volatility.
Peter cites the examples of top tech firms like IBM, Google, Microsoft and Amazon who are investing in the technology, rather than creating their own tokens. Thus, one can buy stocks of these companies for a better investment.
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