Financial Advisor Warns Crypto Is “One Of The Biggest Bubbles Ever” – Says “It’s Gonna Be Ugly” – Markets and Prices Bitcoin News

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The president of Payne Capital Management has warned that crypto is “one of the biggest bubbles of all time.” Noting that the crypto market “is getting bigger and bigger a casino,” he predicts that the bubble will eventually burst and “it’s going to be ugly.”

Crypto is a big bubble waiting to burst, says financial advisor

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

Payne co-designs his firm’s investment and financial planning strategies while overseeing all of his firm’s financial advisors. Prior to founding Payne Capital Management, he spent almost eight years as a financial advisor at Merrill Lynch.

The executive began by agreeing with Berkshire Hathaway Vice President Charlie Munger, who recently said today’s markets are wilder than the dot-com bubble. Noting that “there are pockets of bubbles forming”, stressed the financial adviser:

This whole bitcoin thing, all this cryptocurrency, is one of the biggest bubbles of all time.

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.

Payne noted that bitcoin can climb higher, adding:

There is too much money that can be injected into this market. It’s just becoming a bigger and bigger casino.

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

The president of Payne Capital Management added, “The 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:

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: “So 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.

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

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