Financial Advisor, Ryan Payne, who is also Payne Capital Management’s President, believes that the future of digital currencies would be uglier than expected. He referred crypto economy as an online “casino”.
There is no shortage of individuals and entities believing that the crypto economy is no more than a big ‘bubble’ waiting to burst. This statement is there since crypto-economy skyrocketed, especially after 2019. Amongst these people is Ryan Payne, who is an acclaimed financial advisor and runs Payne Capital Management as its President.
He was recently interviewed by a team of journalists from Yahoo Finance where he discussed the future outcome of the digital economy. He, first of all, endorsed the viewpoint of his colleague in profession namely Charlie Munger of Berkshire Hathaway. Munger had said that Bitcoin, which is a digital currency, is a rat poison killing global investors. He further said that Bitcoin’s economy is a bubble economy that is waiting to be burst anytime. Similarly, Payne commented that there is not just one bubble but in fact there is a whole lot of bubbles. He claimed that the biggest bubble is that of Bitcoin and once that bubble is burst, all of them will pop right away.
However, Payne acknowledged that what is keeping Bitcoin alive is the “investment”. Until and unless investors are putting funds, Bitcoin will continue to go further up. But since it is not a currency like a printed note therefore when investment would stop, it will fall massively. Payne also labeled the digital currency economy as a “casino”. He insisted that a day will come when investors would realize that there is literally no authentic use of digital currencies. They can’t even see what they are buying. It is like a child having an imaginary friend and the friend vanishes when the child grows.
Payne said that an investment vehicle is such which has its multifarious uses other than investment. In the case of cryptocurrencies, people are investing and the prices go up. When they don’t, then the prices come down. To the contrary, the usage of digital currencies for commercial purposes is almost zero. Hence, the growth of the digital currencies’ economy is just a hype which will end with the passage of time, said Payne.
