During an interview this week, Metala Royalty and Streaming CEO Brett Heath revealed that he believes cryptocurrency will lead to the next financial crisis. The owner of the precious metals said that history shows that “mass adoption of new financial product” usually leads to financial crisis.
Execution of precious metals says that the adoption of crypto in public can lead to financial disaster
Brett Heath is CEO Metalla Royalty & Streaming (NYSE: MTA) (TSXV: MTA), a company designed to generate leveraged precious metal (PM) exposure for shareholders through royalties and streams. On May 27, Heath spoke to Kitco.com from the Precious Metals news desk and revealed that he believed the widespread adoption of digital currencies such as bitcoin would lead to catastrophe. Economic disasters begin when Samaj Heath adopts a new financial product.
“When you look at the last few decades and all the financial crises, they all have some things in common. And one of them is the widespread adoption of a new financial product or new technology that is not very well understood, “Heath insisted during his The interview With David Lynn of Kitco.com.
Heath further commented that it reminded him of the subprime mortgage crisis that overturned the financial world 12 years ago. Heath added:
If we revert back to the 2008 mortgage crisis — we had mortgage-backed securities, collateralized debt obligations largely adopted. And once the public adopted this new financial product, it crashed. This was a very big problem.
Crypto Adoption Will Lead to ‘Significant Financial Consequences’
Heath continued by saying that he was skeptical of the money entering the crypto economy and said that the industry was “licensed to print money for the private sector”. But he also questioned the Federal Reserve’s expansion of the US currency system. The prime mover insisted that the crypto economy also grew at an exponential rate. “If you look at the cryptocurrency by cryptocurrency total market cap, it is more than ten times that,” Heath emphasized.
Business is booming for PM companies like Meta Royalty and Streaming as the price of gold is again reaching a new high. At the time of publication, gold is trading at $ 1,904 an ounce while silver is trading at $ 27.92 an ounce. This past March, Heath’s company Received Royalty (NYSE: EGO) (TSX: ELD) on Eldorado Gold’s Tokentinzinho Project. Heath said he is thrilled to be working on a project that will cover “more than 2 million ounces of gold.”
Speaking with David Lynn of Kitco.com, Heath said that the crypto economy appears to be a recipe for disaster and that he thinks it could lead to a potential financial crisis. “The cryptocurrency market can go upwards of $ 3- $ 10 trillion. When you have so much capital wiped out by digital wallets around the world, you better believe some important financial results are being realized,” Heath Concluded.
What do you think of Metala royalty and streaming executive Brett Heath’s opinion about crypto causing a financial disaster? Tell us what you think about this topic in the comments section below.
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