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Payne Capital Management President Ryan Payne appeared on FOX Business’ Mornings with Maria and issued a stern warning about the future of Bitcoin.
Despite the cryptocurrency’s recent rise and increasing institutional interest, Payne argued that Bitcoin’s volatile history and speculative nature could lead to an inevitable collapse, likening the scenario to the 2008 housing bubble.
Bitcoin has experienced significant price swings over the years, with Payne pointing to historical declines of over 60% to 70% on multiple occasions. “If you’re running a business and holding cash in Bitcoin, that’s crazy,” Payne said, criticizing BTC as an unreliable store of value.
Payne’s comments extended to MicroStrategy, a company heavily invested in Bitcoin. Shares of MicroStrategy have risen nearly 500% this year, largely driven by its $4 billion Bitcoin holdings. But Payne called the strategy risky and unsustainable, stressing that the company’s current valuation of around $90 billion is a far cry from its modest $500 million revenue generation.
In comparison, Payne said a company like Enbridge Inc., with $50 billion in annual revenue and a 6% dividend yield, offers a much more stable and profitable investment. In contrast, MicroStrategy’s business model seems entirely dependent on Bitcoin’s price continuing to rise, which Payne describes as a “house of cards.”
Asked if he would consider investing in Bitcoin during the current rally, Payne was adamant: “I don’t own Bitcoin and I’m not going to own it here. At some point, it’s going to crash.” He compared the situation to the financial crisis of 2008-2009, when excessive leverage in the real estate market led to a dramatic decline as prices stopped climbing.
He suggested that MicroStrategy could face a tough year if Bitcoin’s value declines. “This wouldn’t be their first crash,” Payne said, referring to the company’s troubles during the dot-com bubble.
*This is not investment advice.