Cryptocurrency May Cause New Financial Crisis – Metalla Royalty & Streaming CEO
Brett Heath, CEO of precious metals licensing and streaming company Metalla Royalty & Streaming, said the cryptocurrency could be the trigger for a new financial crisis.
Metalla Royalty & Streaming is a Canadian company that offers access to precious metals through royalties and streams of gold and silver.
On May 28, during a speech on the Kitco News financial news, Heath compared the cryptocurrency to the 2008 mortgage crisis and the technological collapse of the early 2000s.
He recalled that all financial crises over the past few decades had one thing in common – the massive introduction of a new and poorly understood financial product or technology.
Heath called cryptocurrencies “a private sector license to print money.” He also questioned the amount of liquidity that has been injected into the market since 2020.
The CEO made a comparison with the total amount of US liquid money in circulation. According to him, from January 2020 to April 2021, this amount of money increased four and a half times. And according to the total market capitalization of the cryptocurrency, its “volume” has increased more than 10 times.
He stated that the “asset class” has no intrinsic value. And the current massive investment in it will end with a global sell-off, as in the early 2000s during the technological crisis.
The precious metals proponent questioned the judgment that the maximum amount of Bitcoin at 21 million provides some value. Also, he pointed to other less valuable cryptocurrencies that are supported by a “better technology.”
“What about the other 10,000 cryptocurrency-related tokens and coins that exist today? Many are equipped with a better technology, better privacy, and use much less energy. When there are so many of them, what is their value?” He added.