Business News There is a warning that cryptocurrencies will cause the...

There is a warning that cryptocurrencies will cause the next financial crisis


- Advertisment -

The situation would have points of contact with the crash caused by technologies in the early 2000s and the mortgage crisis of 2008.

Cryptocurrencies will cause the next financial crisis. When you look back over the past few decades and look at all the financial crises that have occurred, they all have a couple of things in common. And one of them is the massive adoption of a new financial product or a new technology that is not well understood”.

The warning was issued by Brett Heath, CEO of Metalla Royalty & Streaming, a Canadian-based company that operates in the precious metals segment and has a net present value of nearly $500 million.

Cryptocurrencies Financial Crisis

Heath compared a future cryptocurrency crisis to the technology crash of the early 2000s and the 2008 mortgage crisis:

“If we rewind to the 2008 mortgage crisis, we had the massive adoption of mortgage-backed securities, collateralized debt obligations. And once the public adopted this new financial product, it crashed, which was a big problem,” he described.

Heath criticized investing large amounts of money in assets that have “no intrinsic value” and the end result of which would be a large sale.

“When that amount of capital is removed from digital wallets around the world, you are going to feel some major financial repercussions,he said.

The executive also challenged predictions that Bitcoin will overtake gold as a store of value.

Probably wanna read:

Bitcoin: “Dr. Doom”, who predicted the 2008 crisis, gave his forecast

Will Ellon
Will Ellon is a The Advertiser Mirror correspondent who covers politics, business, money, lifestyle, games, movies, technology and worldwide news. Will is a talented guy of 23 years old who lives to write for the people about news, opinions and reviews.

Latest news

Russia Wants Putin-Biden Meeting To Boost Dialogue On Arms Control

The Government of Russia expressed its desire on Tuesday that the meeting between the presidents of Russia and the United States, Vladimir Putin and Joe Biden.

The “Buffett indicator” soared 133% and a stock collapse is feared in the coming months

Analysts say that Warren Buffett's gauge anticipates that the global stock market is overvalued relative to the world economy. Is a new witch born?

This is Paul Tudor Jones’ trio of aces to win on the stock market with inflation

Inflation is here to stay. Says Paul Tudor Jones, legendary and billionaire investor and manager of hedge funds (or hedge funds),...

Israel marks the end of an era with the departure of Netanyahu and his replacement by Bennett

Benjamin Netanyahu's 12-year record as prime minister of Israel came to an end on Sunday after parliament approved a new "Government of Change".
- Advertisement -

Dimon: J.P Morgan is hoarding cash to take advantage of long-lasting inflation

J.P Morgan Chase has been "hoarding" cash instead of using it to buy Treasuries or other investments because of the possibility that higher inflation will force the Federal Reserve (Fed).

Cryptocurrencies in correction? What can we expect in the future

Cryptocurrencies expand through protocols that were born from day one as global instruments without jurisdictional restrictions.

Must read

- Advertisement -

You Might Also LikeRELATED
Recommended to you