{"id":261175,"date":"2021-05-28T06:24:42","date_gmt":"2021-05-28T03:24:42","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-will-cause-the-next-financial-crisis-precious-metals-boss\/"},"modified":"2021-05-28T06:24:42","modified_gmt":"2021-05-28T03:24:42","slug":"crypto-will-cause-the-next-financial-crisis-precious-metals-boss","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-will-cause-the-next-financial-crisis-precious-metals-boss\/","title":{"rendered":"# ‘Crypto will cause the next financial crisis’: Precious metals boss"},"content":{"rendered":"

“# ‘Crypto will cause the next financial crisis’: Precious metals boss <\/strong>”
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The CEO of precious metals royalty and streaming company Metalla Royalty & Streaming, Brett Heath has warned that crypto will \u201clead the charge into the next financial crisis.\u201d <\/p>\n

Metalla Royalty & Streaming is a Canadian-based firm founded in 1983 and has a current net worth of almost half a billion dollars. Metalla offers exposure to precious metals through gold and silver royalties and streams. <\/p>\n

Speaking to financial news<\/a> outlet Kitco News on May 28, Heath compared crypto to the tech induced crash of the early 2000s and the 2008 mortgage crisis, noting that: <\/p>\n

\u201cWhen you look back the last few decades and you look at all of the financial crises that happ<\/a>ened, you know, they all have a couple of things in common. And one of them is the mass adoption of a new financial product or a new technology<\/a> that’s not very well understood.\u201d<\/p><\/blockquote>\n

\u201cIf we just rewind to the mortgage crisis of 2008 […] We had the mass adoption of mortgage-backed securities, collateralized debt obligations. And once the public had embraced this, this new financial product then it crashed, It was a huge problem,\u201d he added. <\/p>\n

The CEO described cryptocurrencies as a \u201clicense for the private sector to print money,\u201d as he questioned the amount of liquidity that has been pumped into the market since the beginning of 2020.<\/p>\n

Heath drew a comparison with the United States\u2019 M1 \u2014 total liquid money in circulation \u2014 noting that since January 2020, the M1 has \u201cincreased by four and a half times.\u201d According the Federal Reserve, the M1 went from $4,018 billion in January 2020, to around <\/strong>$18,935 billion as of April 2021. Heath emphasized that: <\/p>\n

\u201cThat’s an extraordinary increase and it’s such a short period of time. But if you look at cryptocurrency using the total market cap of cryptocurrency, it’s over tenfold.\u201d<\/p><\/blockquote>\n

Heath appears to hold concerns over systemic risk from mass investment into an asset class that he feels holds \u201cno intrinsic value,\u201d with the end result being a sell-off similar to the tech crisis of the early 2000s: <\/p>\n

\u201cWhen you have that amount of capital wiped out of digital wallets across the globe, you better believe there’s going to be some significant financial repercussions that are felt,\u201d he said.<\/p>\n

The precious metals proponent appears unfazed by predictions of Bitcoin surpassing gold as a store of value. He also questioned the notion that Bitcoin\u2019s max supply of 21 million gives it scarcity or value, and pointed to other cryptocurrencies of lesser value that are backed by what he says is better technology: <\/p>\n

\u201cWhat about the other 10,000 cryptocurrency-related tokens and coins that exist today, many of which have better technology, better privacy, and use a ton of a lot less energy?\u201d<\/p><\/blockquote>\n

\u201cWhen there’s so much, what’s the value or what’s really that intrinsic value?\u201d he added. <\/p>\n