Metalla CEO calls crypto economy a ‘recipe for disaster’

Brett Heath, chief executive officer of Metalla Royalty & Streaming, said he believes the mass adoption of digital currencies such as bitcoin will lead to a disaster.

The big boss of the company focused on generating leveraged precious metal exposure via royalties and streams for shareholders, explained his position, pointing out that economic calamities usually begin when society adopts a new financial product.

During an interview, Heath said, “When you look back to the last few decades and all of the financial crises that happened, they all have a couple things in common,” referring to the mass adoption of a new technology that is not very well understood.

A reminder of what transpired 12 years ago

Still speaking about mainstream adoption of cryptocurrencies, the figurehead admitted this reminds him of the subprime mortgage crisis that turned the financial world upside down 12 years ago.

Heath was referring to the adoption of mortgage-backed securities and collateralized debt obligations. After the public embraced the new financial product, it crashed and turned into a huge problem.

License to print money

The Metalla CEO also shared he was doubtful about the money that made it to the crypto economy and referred to the industry as a “license for the private sector to print money.”

The precious metals proponent, meanwhile, acknowledged the exponential growth rate of the crypto economy. He said the total market capitalization of cryptocurrencies has grown tenfold.

But after that, Heath went on to say that the economy is a recipe for disaster and there is a huge possibility that it could lead to a financial crisis.

He pointed out that the crypto market can easily go as high as $3-$10 trillion but when the amount of capital is wiped out, there will be some significant financial repercussions that will be felt across the globe.

 

Image courtesy of Cointelegraph News/YouTube

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