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 has warned that crypto is “one of the biggest bubbles ever.” Stressing that the crypto market is “becoming a bigger and bigger casino,” he predicts that the bubble will eventually burst and “It’s going to be ugly.”

The Financial Advisor identifies Crypto as a big bubble that is about to burst.

Ryan Payne (president of Payne Capital Management), a financial adviser, spoke on Yahoo Finance Monday about the future prospects for Bitcoin and the cryptocurrency markets.

Payne co-designs his firm’s investment and financial planning strategies while supervising all the financial advisers in his firm. Payne spent nearly eight years working as a Merrill Lynch Financial Advisor before establishing Payne Capital Management.

After agreeing to Berkshire Hathaway Vice Chair Charlie Munger’s recent statement that current market conditions are more wild than the dotcom bubble, the executive continued by saying so. Noting that “there are pockets of bubbles being formed,” the financial adviser stressed:

The whole Bitcoin thing, the whole cryptocurrency is one of most significant bubbles.

Munger, who is often called Warren Buffett’s right-hand man, also commented on cryptocurrency, particularly bitcoin. He expressed gratitude to China for banning cryptocurrency and said that crypto would have been impossible to invent.

Payne said that Bitcoin can go higher and added:

There’s too much money out there that can funnel into this market. It’s just becoming a bigger and bigger casino.

“At the end of the day, we’re not using it for that 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 a lot of sense because really it’s not a great store of value as we know. It’s extremely volatile. It’s fake scarcity. It’s not like gold that has real scarcity.” He emphasized:

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

Noting that the global crypto market cap “is somewhere over $2 trillion,” Payne detailed: “When the dot-com bubble burst, those dot-com stocks were worth like half a billion dollars — inflation-adjusted that’s like $1 trillion in today’s dollars. Many of these stocks were worthless. Amazon fell from 80% to 90% after the burst of tech bubble. It took you like 14 years to get back on your money.”

He concluded: “So I do think that bubbles are there. These bubbles are all around us right now. You can exit early, which is the smart move. It’s better to be early than late and get into some of those cyclical names which are selling off right now. Diversify your portfolio. Protect yourself because eventually the music’s going to stop and when it does, no one‘s going to tell you ahead of time.”

What do you think about this financial adviser’s advice? Comment below to let us know your thoughts.

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