“Crypto Is One Of The Biggest Bubbles Ever” Says Financial Advisor Ryan Payne

Cryptocurrencies are said to be in a big bubble (AdmiralMarket)

JAKARTA – In the midst of the booming cryptocurrency, several coins experienced a fairly high price increase. The Bitcoin cs phenomenon cannot be separated from negative sentiments from various circles, one of which is from financial advisor Ryan Payne who said that "crypto is the biggest bubble" and is waiting for the time to burst.

Ryan Payne is president of Payne Capital Management. He discussed the future of Bitcoin and the crypto market to Yahoo Finance, Monday, December 6th.

Reporting from Bitcoin News, Payne co-designed the investment strategy and financial planning of the company while overseeing all financial advisors in the company. Before founding Payne Capital Management, he spent nearly eight years as a financial advisor at Merrill Lynch.

He expressed his agreement with Berkshire Hathaway Vice Chairman Charlie Munger's statement that today's crypto market is wilder than the dot-com bubble in 1998-2000. Munger has also referred to crypto as “rat poison” and crypto trading similar to “trafficking dirt”. Munger last week praised China's actions to ban crypto trading and mining.

“This whole bitcoin, this whole cryptocurrency, is one of the biggest bubbles ever,” said Ryan Payne.

On the other hand, Payne argues that Bitcoin could still go higher. He said that the crypto market is like a bigger casino.

“There is too much money out there that could be funneled into this market. It just becomes a bigger and bigger casino", he added.

“In the end, we don't use it for more commercial use. It's just that more people are speculating", he continued, adding that "it's very similar to when the tech bubble burst."

It doesn't stop there, Payne argues there is no reason whatsoever to own cryptocurrencies because they are nonsensical and not a hedge. Because crypto is very volatile and not like gold.

“The reason for having it doesn't make sense because it's actually not a great store of value as we know it. It is very volatile. This is a fake rarity. It's not like gold has a real scarcity."

“I thought eventually the bubble would burst. It's going to be bad", he said.

Observing the global crypto market cap of more than $2 trillion, Payne said “when the dot-com bubble burst, the dot-com stock was worth like half a billion dollars – adjusted for inflation then like 1 trillion dollars today. Most of the shares became worthless. Even Amazon fell 80% to 90% when the tech bubble burst. It takes you 14 years to get your money back.”

Further, Payne argues that crypto is currently in a bubble: “So I think it's (crypto) in a bubble. They are seeping in now. The smart money here is that you can get out early. Better to arrive early than late and get into some of the best-selling cycle names right now. Diversify your portfolio. Protect yourself because eventually the music will stop and when it does, no one will tell you beforehand.”