- Cryptocurrency critics have further asserted their concerns over the future of Bitcoin and other cryptocurrencies.
- According to the CEO of Metalla Royalty and Streaming, cryptocurrencies will be responsible for the next financial crisis.
- Similarly, Bill Ackman posits that he is not investing in Bitcoin because he perceives it as a purely speculative asset.
- The billionaire has not written off cryptocurrencies entirely, citing Helium, a project aiming to develop decentralized wireless networks, as having potential.
While cryptocurrencies are gaining massive traction, Bitcoin critics, particularly the old money, are also gaining momentum, as they continue to cast aspersions on the technology. The latest in a slew of criticisms comes from Brett Heath, the CEO of Metalla Royalty and Streaming, who has claimed that the next financial crises to plague the world’s markets will be triggered by cryptocurrencies.
On a similar line, Bill Ackman, the founder of Pershing Square Capital Management, has also disparaged Bitcoin, stating that he will not invest in Bitcoin due to its purely speculative nature.
Boomer Sentiments – Brett Heath
Brett Heath, who made his fortune from his metal firm Metalla Royalty and Streaming, has compared cryptocurrency to the tech crash of the 2000s and the mortgage crisis of 2008. According to the billionaire, this hypothesis was based on a cursory study into the history of such financial crises.
He conveyed his belief that a major cause of financial crashes is the “mass adoption of a financial product that is not very well understood.” He compared cryptocurrency to the 2008 financial crisis, asserting that the mass adoption of mortgage-backed securities eventually led to a massive economic implosion.
Speaking further, he expressed his discontent that the private sector has seemingly been armed with the ability to print money, alluding to the rising liquidity that has been pumped into the ecosystem since the start of 2020.
When pushed for his opinion on projections that Bitcoin could eventually exceed gold as a store of value, he remained unphased, implying that Bitcoin’s value is propped up by its limited supply, yet there are thousands of other cryptocurrencies that are backed by better technology. Speaking on the value of the entire sector, he said, “…when there is so much, what is the value?”
On the Flipside
- There is an influx of old-school money coming into the cryptocurrency space after Carl Icahn and Ray Dalio indicated that they are interested in investment opportunities into crypto-related assets.
- While speaking to Bloomberg, Carl Icahn hinted that the value of his investment could go as high as $1.5 billion.
Boomer Sentiments: Bill Ackman
Bill Ackman, the founder of Pershing Square Capital Management, a leading hedge fund, has outlined his stance regarding investment into Bitcoin. The billionaire stated that Bitcoin is a purely speculative asset and, as such, he will not be investing into cryptocurrency because it lacks intrinsic value.
Despite his lack of enthusiasm, Bill Ackman believes that cryptocurrencies are here to stay, and has even indicated that he is keeping tabs on a project that he regards as potentially valuable – Helium. The Helium project is aimed at creating a decentralized wireless network.
According to Helium, the installation of a simple device at home will “create miles of network coverage for a ton of devices.” While he has not yet invested in the project, Ackman believes that Helium stands in good stead to “motivate people” to create a global wireless network.