Ron Paul appeared recently on the CNBC channel warning people about the way this crypto craze is leading. We have seen Paul taking on Donald Trump and Federal reserves in the past and this interview is equally interesting .
Whilst the whole world is going crazy after making quick money from cryptocurrency, Paul appeared on CNBC warning people about how this might end. We heard Paul saying that the cryptocurrencies has become the rival to stocks and in his belief, both are big bubbles.
Ron Paul said- " I think it's going to continue to do exactly what it's doing. It's going higher and it's going lower" to this he added "We can look at what's happening now, which to me is a climatic end of QEs"
CNBC Channel :- https://www.youtube.com/channel/UCvJJ_dzjViJCoLf5uKUTwoA
Which in fact may turn out to be true since there were times when we saw a huge jump in stocks, which baited people in investing a huge amount of money and that ended up just being a regret. With all the facts in his pocket, he questions - "I look at the problems we face. I think they're gigantic and people are desperate and looking everywhere. Why would they buy bonds that pay negative interest rates? Why would they buy stocks, and say well this time it's different? " and "Cryptocurrency is a reflection of the disaster of the monetary dollar system."
According to Paul bitcoin is one the ways by which banks are trying to recover from the last financial crisis. Whether this is or not we don't know but one thing is certain that people are making a huge profit now with bitcoins. If this is a bait then its good enough since people have invested in such large numbers and only time will tell whether it was worth a deal. For now, it would be good if we take a little time to think before investing in this new gold rush.
Since so many are investing Paul couldn't control himself warning people that is the big bubble just like the stocks that is growing exponentially. Paul- "They're both big bubbles in the sense that it occurred because there was excessive credit. But if you look at the curves, I think that the cryptocurrency curve looks more threatening"
He was not sure that when this turn of events will happen but he said that as the graphs are rising this will approach soon. There is a limit to everything, we know that this rise in bitcoin will stop once and this might come without any warning, so this is the time that people should think twice before making any move in bitcoins market.
