Cryptos will lead the next financial crisis, here's why - Brett Heath
(Kitco News) Cryptocurrencies could lead the charge into the next financial crisis, said Brett Heath, CEO of Metalla Royalty & Streaming.
"When you look back to the last few decades and all of the financial crisis 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 is not very well understood," Heath told David Lin, anchor for Kitco News.
The reality of cryptocurrencies today is that they are a license for the private sector to print money, Heath said. "Since January 2020, the M1 supply increased 4.5 times. But if you look at the total market cap of cryptocurrencies, it is over a tenfold increase," he said.
The crypto space has the recipe to create a significant financial panic. "The crypto market could go upwards $3-$10 trillion. When you have that amount of capital wiped out of digital wallets across the globe, you better believe there is going to be some significant financial repercussions that are felt," Heath noted.
To find out what could trigger this major wipeout in crypto and the broader financial markets, watch the video above.