Speaking to Kitco News, Heath said all historical financial crises have various attributes in common, including mass adoption of a new financial product or a new technology. He singled out the 2008 wide-scale adoption of mortgage-backed securities and the tech boom in the early 2000s while noting that cryptocurrencies are heading in the same direction. Brett added that cryptocurrencies would potentially face the same fate and collapse. As cryptocurrencies grow in value, Heath notes that they are offering the private sector a chance to print more money while questioning the rarity of digital assets. According to Heath, cryptocurrencies currently have the potential of rising further in market capitalization, and if the sector collapses, the capital will be wiped out, creating a recipe for crisis. Heath projects further complications ahead-considering there are thousands of available cryptocurrencies, with a majority lacking utility. The executive acknowledged that blockchain technology is beneficial. Still, new cryptocurrencies are emerging with similar attributes without any uniqueness, and they will be the main casualty in case of the sector’s meltdown. However, he maintained that some cryptocurrencies would sustain the collapse and dominate, similar to Google during the tech boom wipeout.
Other bitcoin alternatives might emerge
Heath states that although bitcoin has a significant market capitalization with massive adoption, a better asset might emerge in the future. However, he cited some of bitcoin’s shortcomings, such as the carbon footprint, as a significant setback. For investors, Heath advises finding alternative digital gold away from bitcoin. He cited investments in gold royalty companies as the ultimate digital gold since investors still control their assets away from government control. Watch the video: Cryptos will lead the next financial crisis, here’s why – Brett Heath [binance]
