The collective cryptocurrency market boomed this week, garnering a lot of attention from investors and crypto-enthusiasts around the world. At press time, Bitcoin [BTC] was priced at $5,049 and was still gaining against the US Dollar by over 2%.
However, the massive price hike failed to convince Peter Mallouk, President of Creative Planning, a wealth management firm.
In an interview with CNBC, the certified financial planner predicted that the cryptocurrency market will eventually crash and that people will witness the collapse of cryptocurrencies. The cryptocurrency market is too speculative, fairly new and risky, he said.
Peter Mallouk added that the cryptosphere was too crowded with various tokens like Litecoin [LTC], Ethereum [ETH], and XRP and that “there’s no way that even a fraction of them can survive.” He added that there was a possibility that one or two tokens might survive the eventual fall.
“As a general rule of thumb, you don’t want to own something that’s not going to pay you.”
Peter Mallouk emphasized the importance of investment, which according to him, held real value. The ownership of real estate to acquire rent, or owning stocks which paid dividends was far more lucrative and profitable, he added.
Contrarily, Mallouk praised the potential of blockchain, advising that it was a more stable industry to invest in.
“Blockchain technology is real and you’ve got big companies like IBM and Accenture and others investing in it. That doesn’t mean that Bitcoin is going to work out or Ripple is going to work out. Palm and Blackberry were fantastic, but Apple came in and took them out. Lycos and Excite were here before Google.”