While many like to predict the future price of Bitcoin, accuracy can vary. However, one rule that has become clear in recent years is that betting against Bitcoin is rarely a smart move.
Peter Mallouk, a certified financial planner and president of a wealth management firm, is one such person who has come up with a dire Bitcoin prediction — and been proven distinctly wrong. In April of last year, on a day when Bitcoin leaped nearly $1,000, Mallouk warned that cryptocurrencies were going to collapse.
BTC up 95% since his recommendation #bitcoin https://t.co/OhB8S3639h— Alan Silbert (@alansilbert) February 7, 2020
Ten months later, the cryptocurrency space is still with us. In fact, after Mallouk warned not to buy Bitcoin, it has almost doubled in value. The issue with people like Mallouk making such predictions is that they are broad and sweeping, but their background knowledge and understanding of the space is clearly lacking.
Bitcoin: ‘Not a Real Investment’
In a post on CNBC, Mallouk outlined his qualms with cryptocurrency. His first point was that there were too many different types that it would be impossible for them all to survive. However, he did not count out one or two surviving. [CNBC]
Mallouk’s recommendation was to rather put money into investments that are going to pay you to own them. He recommended real estate, where one is collecting rent; stocks, where there are dividends; or bonds, where one can collect yield.More so, Mallouk’s recommendation also came with another narrative that has long been argued in terms of its validity: ‘Blockchain over Bitcoin.’ Mallouk said that, if investors are excited about blockchain, it would be better to invest in companies like IBM and Accenture that are active in the space.
Double Trouble
Mallouk’s recommendations, in hindsight, have been shown to be rather bad advice. Not only is Bitcoin up 95 percent since he made his prediction about cryptocurrency collapsing, but his tip on IBM also has not paid off.
IBM’s stock in April 2019 was trading at $143; today, it has reached $156 — an increase of nine percent. This is also only as high as it is thanks to a notable spike in IBM’s price from January 30 that saw the stock grow from $136 to its current year-long high.
Bitcoin has proven over the last few years that while it may be a volatile asset, there is very little indication that it is on the brink of collapse. According to 99bitcoins.com, Bitcoin was declared dead only 41 times in mainstream media in 2019, this is in comparison with the 124 obituaries it saw in 2017 when it first rose to mainstream prominence.
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