The integration of futuristic financial technology into the existing modes of doing business initially spells doom for the global economy, as past events show. If you need a casual jog down the memory lane, the Great Recession of 2008 is a prime example.
According to the CEO of Metalla Royalty & Streaming, Brett Heath, a precious metals dealer, crypto will soon lead the charge to a worldwide financial crash. With the amount of money being printed in the United States, which pales in comparison to the amount of digital assets being created every day, the Metalla chief believes that past events of financial doom will soon materialize.
According to Decrypt, Heath remarked that “when you look back to the last few decades, and you look at all of the financial crises that happened, 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 that’s not very well understood”.
He compared the mass-adoption of mortgage-backed securities in the United States prior to the 2008 financial crisis to the situation in the present crypto market. People embraced the new asset class passionately, but the market came up short of the pre-determined indicators of maximum profit at that time, resulting in catatonic losses that “had repercussions out through the entire world”.
Similarly, the Metalla Chief drew comparisons with the tech crash of the early 2000s, an identical situation where “you had a new technology that no doubt changed the world, but it wasn’t very well understood. And so we had tech companies pop up all over the place that were actually worth nothing, and this ultimately resulted in their intrinsic value, which was zero”.
While cryptocurrencies have evolved into a legit “license for the private sector to print money”, dollars in circulation have seen a massive rise since January 2020. In comparison, the market cap of cryptocurrencies has surged more than tenfold.
In the event the crypto streets take a big hit against the currency, chances are your capital gets “wiped out across the globe, and you better believe there’s going to be some significant financial repercussions that are felt”, Brett Heath told Decrypt.
Will the crypto market crash like the world economy did in 2008? Hit the comment section to let us know.