Financial Advisor Predicts Cryptocurrencies Are “One of the Biggest Bubbles in History”; says ‘it’s going to be ugly’

Financial adviser Ryan Payne, chief executive of Payne Capital Management, discussed the future position of bitcoin and the digital currency market on Yahoo Finance on Monday. Payne co-plans the investment and financial planning strategies of his association while regulating each of his firm’s financial advisers. Prior to founding Payne Capital Management, he spent approximately eight years as a financial advisor at Merrill Lynch. The leader began by agreeing with Berkshire Hathaway vice chairman Charlie Munger, who recently said the current lines of business are more astonishing than the dot-com bubble. Noting that âthere are pockets of bubbles forming,â the financial adviser pointed out: this whole bitcoin thing, all this cryptocurrency, is one of the biggest bubbles of all time.
Payne noted that bitcoin can climb higher, adding:
Munger, who is often referred to as Warren Buffett’s right-hand man, also commented on cryptocurrency, particularly bitcoin. He praised China for banning cryptography and said he wished cryptography had never been invented.
There is too much money that can be injected into this market. It’s just becoming a bigger and bigger casino.
The president of Payne Capital Management added, âThe reasons for owning it don’t make a lot of sense because it’s really not a big store of value as we know. It is extremely volatile. It is a false rarity. It is not like gold which has a real scarcity. He underlined:
âAt the end of the day, we’re not using it for much more commercial use. It’s just more people speculating, âhe continued, adding thatâ it’s very similar to the bursting of the tech bubble â.
I think this bubble will eventually burst. It’s gonna be ugly.
Noting that the global crypto market cap “exceeds $ 2 trillion,” Payne detailed, “When the dot-com bubble burst, those shares of internet companies were worth around half a billion dollars – adjusted for inflation. , that’s equivalent to $ 1 trillion in today’s dollars. Most of those stocks went worthless. Even Amazon fell 80-90% when the tech bubble burst. It took you about 14% years to get your money back.
He concluded: âSo I think the bubbles are there. They are everywhere right now. The smart money here is you can get out early. Better to be early rather 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.
Summary of the news:
- Financial Advisor Predicts Cryptocurrencies Are “One of the Biggest Bubbles in History”; says ‘it’s going to be ugly’
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