As you might expect, Brett Heath doesn't buy the argument that Bitcoin's fixed supply makes it valuable.
Cryptocurrencies are going to “lead the charge into the next financial crisis,” the head of a precious metals company has warned.
Metalla Royalty & Streaming’s Brett Heath believes that the current trajectory of digital assets draws parallels with the crashes seen following the dotcom boom and the subprime mortgage crisis.
Heath explained that one thing that unites each crash that occurred “is the mass adoption of a new financial product or a new technology that’s not very well understood.”
He went on to warn that digital assets have “no intrinsic value” and all of this could contribute to a dramatic sell-off in the not-too-distant future, adding:
“When 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.”
An Inevitable Skeptic
Of course, it’s rather unsurprising that Heath is deadest against the idea of cryptocurrencies, not least because of how the likes of Bitcoin have caused funds to flow away from precious metal markets at times. Some crypto enthusiasts have also likened BTC to “digital gold.”
One of the things that makes Bitcoin so appealing (in the eyes of many) is the fact that it has a fixed supply of 21 million — offering an antidote at a time of rampant money printing. This argument doesn’t hold sway with Heath, who added:
“What 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?”