Financial Adviser Warns Crypto Is ‘One of the Biggest Bubbles Ever’ — Says ‘It’s Going to Be Ugly’ – Markets and Prices Bitcoin News

The president of Payne Capital Management warned that cryptocurrencies are “one of the largest bubbles in history.” Emphasizing that the cryptocurrency market is “becoming a bigger and bigger casino,” he predicts that the the bubble will eventually burst and “it’s going to be ugly.”

Cryptocurrencies are a big bubble waiting to burst, according to financial advisor

Financial advisor Ryan Payne, president of Payne Capital Management, spoke about the future prospects for bitcoin and the cryptocurrency market on Yahoo Finance on Monday.

Payne co-designs your company’s investment and financial planning strategies while overseeing all of your company’s financial advisors. Before establishing Payne Capital Management, he spent nearly eight years as a financial advisor at Merrill Lynch.

The executive began by agreeing with Berkshire Hathaway vice president Charlie Munger, who recently declared that today’s markets are wilder than the dot-com bubble. Noting that “pockets of bubbles are forming”, the financial advisor highlighted:

This whole bitcoin thing, this whole cryptocurrency, is one of the biggest bubbles in history.

Munger, who is often called Warren Buffett’s right hand man, also commented on cryptocurrencies, particularly bitcoin. He praised China for banning cryptocurrencies and said he wishes cryptocurrencies had never been invented.

Payne noted that bitcoin may still go higher, adding:

There is too much money out there that can be funneled into this market. It is becoming a bigger and bigger casino.

“At the end of the day, we are not using it for much more commercial use. It’s just more people speculating, “he continued, adding that” it’s very analogous to when the tech bubble burst. “

The president of Payne Capital Management further opined: “The reasons for owning it don’t make much sense because it really isn’t a huge store of value as we know. It is extremely volatile. It is a false shortage. It is not like gold that has a real shortage. “He emphasized:

I think that eventually that bubble will burst. It’s going to be ugly.

Noting that the global crypto market capitalization “is somewhere above $ 2 trillion,” Payne detailed: “When the dot-com bubble burst, those dot-com stocks were worth about $ 500 million; adjusted to inflation, that equates to a trillion dollars in today’s dollars. Most of those stocks were rendered useless. Even Amazon went down from 80% to 90% when the tech bubble burst. It took you like 14 years to get your money back. ” .

He concluded: “So I think the bubbles are there. They are ubiquitous right now. The smart money here is that you can get out early. Better to get there early than late and get into some of those cyclical names that are selling right now. Diversify your portfolio. Protect yourself because eventually the music will stop and when it does, no one will tell you in advance. “

What do you think of the advice of this financial advisor? Let us know in the comment section.

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