The CEO of the precious metal company, Metalla Royalty & Streaming – Brett Heath – voiced her opinion on cryptocurrency. He believes that crypto will be the next financial crisis to happen. Furthermore, he juxtaposes the industry with the mortgage crash that happened in 2008 and the tech collapse in the early 2000s.
Crypto Will Lead the Next Crash
The leading executive in Metalla Royalty and Streaming warned the public in an interview with Kitco News, a financial newspaper, that the adoption of cryptocurrency globally will hurt the global economy. In addition, he added that there is a level of understanding that is lacking in the crypto space as many people are investing in it without knowing the implication and risks attached.
He said, “In retrospect, every financial crisis that has happened in the last few decades has some things in common. One of the similarities is the adoption of a new product without proper understanding.”
Moreover, Heath raised his skepticism on the ability of cryptocurrencies to fight inflation, and he described the digital assets as permission and endorsement for the private sector to print money. He then cited an illustration with the total money in circulation in the United States, mentioning that the amount increased to $18.9 trillion in April 2021 from about $4 trillion in January 2020.
He said, “Such increase in a short time is very amazing. But if the market capitalization of the digital assets is referenced, the increase will be in tenfold.”
Moreover, BTC would fail in passing gold as a store of value. He, however, said conclusively that the idea of 21 million Bitcoin maximum supply would not be profitable to the digital asset, and there are some other cryptocurrencies in their tens of thousands that are better structured than the foremost one.
Most Digital Assets are Worthless
In the past, James Bullard, the Federal Reserve Bank of St. Louis’ President, has a similar opinion on cryptocurrencies. He mentioned that there should be extra caution from the investors when making their financial decision as many of the cryptocurrencies are “worthless.”
Bullard also mentioned the issue of the unpredictability of cryptocurrencies faintly. He also warned those who are interested in investing to be careful of the volatility of the market. However, Bullard is sure that people are aware of the risk involved.